Last month, the data intelligence platform provider raised $10bn in a Series J funding round.
Databricks has raised more than $5bn in what is the software company’s largest debt raise to date, sources have told Bloomberg.
According to sources who spoke to the business news outlet, the company’s lenders include Blackstone, Apollo Global Management and Blue Owl Capital.
Direct lenders are providing the company with a $2.25bn term loan along with a $500m delay-draw tranche – or a term loan that lets borrowers withdraw predefined amounts of a total pre-approved loan amount, in addition to which, a group of banks including JP Morgan, Barclays and the Goldman Sachs Group have provided the company with $2.5bn in revolving credit.
The software company plans to use the new financing to offset tax burdens, reports suggest.
The latest debt financing round comes after the company announced that it raised $10bn in capital in a Series J funding last month, a deal that pushed its valuation up by nearly $20bn to $62bn.
According to Databricks’ announcement in December, the equity funding will be invested towards new artificial intelligence products, acquisitions and a “significant” expansion of its international market operations – opening new regional hubs in London and Singapore, alongside an expanded presence in Latin America and the Middle East.
Moreover, in addition to fueling its growth, the company also said that the newly raised capital will be used towards providing liquidity for its employees as well as for paying taxes.
The company, which refers to itself as the “largest and most successful independent open source company by revenue”, provides a data intelligence platform designed to make it easier for organisations to use data, machine learning, analytics and AI applications, also expects to cross $3bn in annual revenue this year.
According to Databricks, more than 10,000 organisations around the world – including Block, Comcast, Condé Nast, Rivian, Shell and more than 60pc of Fortune 500 companies – rely on its AI-powered data intelligence platform. In 2021, it raised $1.6bn at a valuation of $38bn, becoming one of the many ‘decacorn’ start-ups in 2021, while in 2023, it raised more than $500m in a Series I funding round, putting the company at a valuation of $43bn.
Last year, Databricks acquired Tabular – a data management company – in a deal reportedly valued at $2bn. Founded by former Netflix employees Ryan Blue, Dan Weeks and Jason Reid, Tabular is a Silicon Valley start-up that helps optimise data stored in the cloud.
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