Slack raises another $427M, valuation spikes by billions

Slack confirmed on Tuesday it has raised another $427 million in a financing round that values the workplace communication platform at more than $7.1 billion.

Dragoneer Investment Group and General Atlantic served as lead investors in the Series H round, contributing funds alongside T. Rowe Price Associates, Wellington Management, Sands Capital and Baillie Gifford. With the latest round, the cloud-based messaging service has raised more than $1.2 billion from various investors.

“The way people work is changing, and we are committed to delivering the best product and experience for our customers in this new era,” Slack said in a post on its website. “We pursued this additional investment to give us even more resources and flexibility to better serve our customers, evolve our business, and take advantage of the massive opportunity in front of us.”

Slack said it has more than 8 million daily active users, or roughly double its user base at the same time about one year ago. The company said more than 70,000 groups pay for a premium version of the service.

Slack was valued at $5.1 billion after its most recent financing round in September 2017. Several major tech companies, including Amazon, Google and Microsoft, have either launched rival services or expressed interest in acquiring Slack, according to reports.

“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,” Dragoneer Founder and Managing Partner Marc Stad said in a statement.