Israeli startup Redis Labs announced closing a $310 million Series G round. The investment was led by Tiger Global, with participation from SoftBank’s Vision Fund 2 and existing investor TCV. The investment is composed of a $110 million investment in the company, alongside a secondary deal with the trio of funds purchasing a $200 million stake from existing investors. The round has doubled Redis’s valuation, estimated now to be north of $2 billion.
Aiming for an end-of-year IPO
Redis Labs’ commercial product, Redis Enterprise, offers cost-effective and efficient database services on cloud-native infrastructure. This way, enterprises are set for any volume of traffic in real-time. With the company’s last round in August 2020, Redis also announced it would support both Microsoft and Google cloud services. At the same time, Redis will also continue developing its server for machine and deep learning models.
In a chat with Geektime, founder and CEO Ofer Bengal hinted to the company’s next step, after revealing in the past that the company is headed towards an IPO: “We’re preparing the company to go public, and should be ready towards the end of the year. The exact moment will be based on market movements at the time.” Despite the trend of Israeli startups going public via special purpose acquisition company (SPAC) merger, Bengal clarifies that Redis aren’t even considering the option.
Regarding the investment from major VC funds like Softbank and Tiger Global, Bengal said that “the company is familiar to most major global investment firms through our participation in hedge fund conventions and personal contacts. We are often approached regarding investment opportunities, and we chose the two that seemed right.”
Redis stated that currently the company has over 8,000 paying customers, including servicing 30% of Fortune100 companies; strategic partnership with Microsoft, which adds Redis’ capabilities to Azure Cache, and annual revenue growth of 54% in each of the last 3 years.
Redis Labs was founded in 2011 by entrepreneurs Ofer Bengal and Yiftach Shoolman (CTO), originally based on open source Redis. In 2015, Redis creator, Salvatore Sanfilippo joined the company to lead open source and community development. The company’s headcount nears 500 employees worldwide, and plans to increase it by 200 this year, with half of them headed to Redis’s Israeli R&D center. The company has raised $556 million to date.