Confirmed: Slack Raises $427 Million In Funding

By Noah Long ● August 23, 2018

Earlier this month, it was rumored that enterprise collaboration platform Slack was planning to raise over $400 million with a valuation of over $7 billion and it turns out that was true. Slack has raised $427 million in funding led by Dragoneer Investment Group and General Atlantic and participation from T. Rowe Price, Wellington Management, Baillie Gifford and Sands Capital Ventures.

With this round of funding, Slack has a valuation of more than $7.1 billion and the company has raised a total of about $1.27 billion in funding. This includes a $250 million round that was raised back in September at a $5 billion valuation.

Currently, Slack has 8 million daily active users (DAUs) and 70,000 paid teams. In September 2017, Slack reported it was hitting 6 million DAUs and 50,000 paid teams. Back then, Slack said it was hitting $200 million in annual recurring revenue. This means that Slack could potentially be hovering close to the $280-$300 million revenue figure now.

At this size of a valuation, it seems unlikely that Slack would be acquired by another technology company as the price would be very high. Going public seems to be the most likely scenario.

In the meantime, Slack has to face intense competition with Microsoft. By including Microsoft Teams into the Office 365 line of products, Microsoft is giving Slack a run for their money. Last month, Microsoft even released a free version of Teams to help further increase adoption.