Customer Experience Company Medallia Prepares To Raise Over $200 Million In IPO

By Amit Chowdhry ● Jul 12, 2019
  • Customer experience management company Medallia is planning to raise somewhere between $212.8 and $239.4 million once the company debuts on the public markets this month

Customer experience management company Medallia is planning to offer 13.3 million shares for between $16 and $18 each and stockholders are selling 1.175 million shares, according to Forbes

At this range, this means Medallia will raise somewhere in the ballpark of $212.8 million and $239.4 million after the company debuts on the public markets this month.

And Medallia will be valued at more than $2 billion as it starts trading on the New York Stock Exchange under the ticker symbol “MDLA.” However, this is a drop from the company’s private valuation. Medallia was valued at $2.4 billion following a $70 million round that it raised in February (Pitchbook’s Medallia profile).

Medallia has raised more than $330 million in funding from investors such as Sequoia Capital, Saints Capital, and TriplePoint Venture Growth. And the company’s married co-founders Borge Hald (Co-founder, Executive Chairman, and Chief Strategy Officer
) and Amy Pressman (Board Member) own more than 15% of the company, but they are planning to sell shares during the IPO. And Medallia president and CEO Leslie Stretch owns a 1.3% stake but is not planning to sell during the IPO.

Sequoia Capital’s stake in Medallia is pegged at about $1 billion, according to Biz Journals. The venture firm is the only outside investor with a major stake with about 41% of the company’s pre-IPO shares. Sequoia Capital Douglas Leone led the venture firm’s investment in Medallia and has a board position.

Medallia competes against companies like SurveyMonkey and Qualtrics. The company essentially collects data on customer experiences in order to develop data-driven insights to help companies drive better strategies. And Medallia reported that its customer base and revenue increased 20% for the year ending April 30 and January 31 — largely driven by subscriptions. However, its losses widened to $82.2 million during the same period.

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