The workplace focused communications platform Slack raised $427m in its series H round of funding launched to help further grow the company. The round, which was led by Dragoneer Investment Group and General Atlantic, now has the company at a valuation of $7.1bn.
Following the round of funding, Marc Stad, managing partner and founder of Dragoneer, said: "Slack is an exceptional company that is revolutionizing the way people collaborate and we look forward to a long-term partnership with the Slack team as they continue to grow the business".
The platform, which launched in 2013, has 70,000 teams around the world paying to use it and more than 8 million daily users. Despite competition from companies such as Facebook and Microsoft which are both developing platforms for the market, Slack has managed to position itself as the industry standard. Its success has been attributed to its ability to integrate practically any piece of software an office worker might use and its user-friendly interface. It also entered the market at a time when other communications platforms such as WhatsApp had begun gaining widespread popularity.
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While the startup has not yet revealed any explicit details of what it plans to do with this round of funding other than fuel its growth, it bought some of its competitors such as Hipchat and Stride from Atlassian in 2016 – a trend it might carry on in the future. In a statement from Slack, the company noted: "There is still enormous potential to change the way that people and organizations collaborate and work together."
T.Rowe Price Associates Inc. analyst Alan Tu commented: "Slack has made strong progress in a very short time in this new era of enterprise collaboration. Our investment represents our belief in the company's vision and leadership team, together with the product's potential to increase productivity and change the way people work on an even larger scale."