Enterprise data analytics provider
ThoughtSpot has raised $248 million at a $1.95 billion valuation. New investor
Silver Lake Waterman participated alongside existing backers
Geodesic Capital. The company serves household names like
Founded in 2012 and based in the Bay Area, the business develops artificial intelligence-powered software that enables companies to search through internal data sources, kind of like Google for internal business operations. Cofounder and executive chairman Ajeet Singh previously launched information technology infrastructure provider
Nutanix (Nasdaq: NTNX), which went public in September 2016 at $16 per share. Fellow co-founder and chief technology officer Amit Prakash previously worked in engineering for Google's AdSense business, following a role as a founding engineer at Microsoft's Bing.
This funding round more than doubles the company's previous valuation from May 2018, which in turn doubled its August 2017 valuation. Here's ThoughtSpot's fundraising history, per PitchBook data:
June 2012: $10.7M round | $30.85M valuation
June 2014: $30M | $140.51M
Oct. 2016: $63.75M | $313.75M
Aug. 2017: $60M | $450M
May 2018: $145M | $950M
Aug. 2019: $248M | $1.95B
Its growth goes beyond a soaring valuation, however. Over the past year, the company has opened new offices in Singapore, Tokyo and Dusseldorf, Germany, while injecting $25 million into its existing Bangalore, India, office. ThoughtSpot told PitchBook it also plans to expand into Eastern Europe, citing an abundance of technological talent in the region.
CEO Sudheesh Nair (pictured) said he believes the company's triple-digit growth rate is sustainable, at least in the near-term. "The market itself is still expanding and growing with approximately 20-40% CAGR," he said. "In the next couple of years, we believe there is ample opportunity for us to keep the growth pedal-to-the-metal."
And while 2019 has seen a tech IPO frenzy, Nair isn't interested in following the crowd without a solid reason.
"You look at this round, this is somewhat of a 'mini-IPO.' ... Our valuation is comparable to many of the recent software IPOs," he said. "But we are still a young company. With this money in the bank, we believe we can do the right thing and take the company public at the right time for the right reason. ... Ultimately, if you want to build a company of lasting value, you can't be focused on an IPO. You have to be focused on a purpose.”
With data storage capacity continuously growing, ThoughtSpot isn't alone in competing for corporate budgets. On August 12, its rival
scored $100 million at a $370 million valuation to advance its Fusion Platform, which also provides for enterprise data searches. In June, Google agreed to acquire data analytics provider Looker for $2.6 billion in cash, while
Sisense agreed to acquire San Francisco-based
Periscope Data for an undisclosed amount in May. Periscope was valued at $100 million after a $25 million Series B in late 2016.
Featured image via shuoshu/DigitalVision Vectors/Getty Images; photo of CEO Sudheesh Nair courtesy of ThoughtSpot