Workplace social messaging app, Slack Technologies Inc. said it raised $250 million from Softbank Group Corp. and other investors in the latest funding round, raising Slack’s company value to $5.1 billion, a 34 percent increase from its previous year’s value.
The latest funding round, led by Softbank’s Vision Fund has earned Slack $841 million in funds. Majority of Slack’s funding has come from Softbank. The funds earned will be used for resources which will help Slack to operate as cash-generating company and eventually lead to an IPO launch, Slack Chief Executive, Stewart Butterfield said.
It was previously reported back in July by sources that Slack would be raising $250 million in a funding round led by Softbank.
There has even been consideration from companies, such as Amazon, in purchasing the startup company, according to Bloomberg. Recode also reported that companies like Google and Microsoft may be interested in Slack as well. There has been no confirmation from the companies.
Slack has more than 9 million weekly active users and 6 million daily active users. The company has more than 2 million people paying for subscription services as well as more than 50,000 teams and has generated revenue from subscriptions of up to $200 million, according to Bloomberg.
Earlier in September, Slack also announced its expansion in other countries such as the United Kingdom, Germany, France, and Japan. The company was previously only available in English but now offers various different languages for global users. Although, the app is still most popularly used in the U.S.
Butterfield said he looks forward to an IPO launch, but said it will not come before the end of 2018.