Slack, a messenger app designed for professional circles, is raising a funding round in the ballpark of USD 400 Million with a post-money valuation of at least USD 7 Billion, according to people familiar with the matter. This is an additional USD 2 Billion on its last valuation in September 2017 when SoftBank led a USD 250 Million funding round at a USD 5.1 Billion valuation.
Slack recently passed 8 Million total daily active users, 3 Million of whom are paying. According to TechCrunch, multiple sources said a new investor General Atlantic is leading the funding round with possibly a new backer in Dragoneer. Although it is still unclear how many investors are involved with Slack and whether the round has closed, it has at least 41, according to PitchBook.
The USD 400+ Million funding round, Slack’s largest to date, points to the opportunity in enterprise messaging and for a mix of casual and professional conversations with GIFs or other apps at the workplace. Similar app WhatsApp topped 1.5 Billion recently. The funding amount also emphasizes Slack as a leader in the area as it soared ahead of other messenger apps released in 2013, and it will be essential for Slack moving forward in the face of competitors releasing similar apps like Microsoft’s Teams and Facebook’s Workplace.
The Company currently has 70,000 paid teams with 65% of Fortune 100 companies including IBM, 21st Century Fox, and eBay as its largest userbases, and customers spread out in 100 countries. It employees a staff of over 1,000 and is run under CEO Stewart Butterfield.