Databricks said Tuesday it raised $ 1.6 billion in a Series H funding round that valued the enterprise software company at $ 38 billion. That’s a $ 10 billion increase since February when Amazon, Google, and Salesforce were all included as investors in a separate $ 1 billion capital increase.
The company has raised nearly $ 3.6 billion to date and is well on its way to achieving sales of $ 1 billion or more in 2022, growing 75% year over year. The company says its annual recurring revenue grew to $ 600 million from about $ 425 million last year.
The latest round of funding is led by Morgan Stanley’s Counterpoint Global Fund and includes new investors Baillie Gifford and ClearBridge Investments from New York City. Existing investors such as BlackRock, Andreessen Horowitz, Tiger Global Management, T. Rowe Price Associates and Fidelity Investments also took part in the round.
Databricks became famous for helping companies implement a version of Apache Spark, an alternative to Hadoop technology for storing many different types of data in bulk. It can help cleanse data for exploration in data visualization software like Salesforce-owned Tableau. Databricks software provides companies with an easy way to run this type of software without having to worry about configuring and updating it. Databricks is also increasingly helping companies like Comcast, Shell, Expedia, and Regeneron provide artificial intelligence models. It claims to serve more than 5,000 such customers in 19 countries.
The company said it will use this latest funding to double its open source project called Data Lakehouse. This project enables companies to transform their existing messy data lakes – centralized repositories that can store structured and unstructured data – into clean delta lakes of high-quality data, accelerating their data and machine learning initiatives.
“This new investment reflects the rapid adoption and incredible customer demand we are seeing … and underscores the industry and investor confidence in our vision,” said CEO Ali Ghodsi in a press release announcing the transaction. “This marks an exciting new chapter that will enable us to accelerate our pace of innovation and continue to invest in the success of data-driven companies on their way to the Seehaus.”
To help accelerate its Lakehouse technology, Databricks will also appoint former Salesforce manager Andy Kofoid as President of Global Field Operations.
– CNBC’s Jordan Novet contributed to this report.
Disclosure: Comcast owns NBCUniversal, the parent company of CNBC.
Databricks is a two-time CNBC Disruptor 50 company that ranks 37th on the list this year. Sign up for our weekly original newsletter that goes beyond the annual Disruptor 50 list and offers a closer look at start-up trends and founders who continue to innovate in all areas of the economy.
