Surging business growth at Redis Labs has helped the real-time cloud database startup to raise $110m at a $2bn-plus valuation, doubling its valuation from August 2020. The company will use the cash to expand its global footprint, develop its software, and build customer support.
The company said today it recorded a 54 per cent CAGR in revenue growth over the three years ended 31 January 2021. It has more than 8,000 paying customers and a net retention rate greater than 120 per cent. That means most existing customers stay with the company and increase their spend.
Redis Labs co-founder and CEO Ofer Bengal said: “We founded Redis Labs with the idea that the future of the database market would be defined by performance, where Redis excels. Through the dedication of our team, Redis has become an enterprise-grade data platform to tackle nearly any real-time use case across every industry.”
Redis Labs was founded in 2011 in Israel. The latest round was led by new investor Tiger Global, with participation from another new investor, Softbank Vision Fund 2 and existing Redis Labs investor TCV. The fund-raising rate is breath taking, with $270m raised in three rounds in successive years and a total of $347m raised to date. It bagged $100m in an August 2020 F-series round at a $1bn-plus valuation, and $60m in an E-round in 2019.
In August last year Bengal suggested an IPO was one to two years away. Redis Labs is demonstrating fast growth, and it and its investors are hoping that the market will reward that. Think of Snowflake as a prime example of the fast growth-high reward business model.
Redis (Remote Dictionary Server) is an open source, NoSQL, key-value database. It runs on a cluster of nodes and loads into main memory from disk at system start-up time, effectively using memory as a cache and so getting fast performance. The Redis database is used for real-time data collection and analytics.
Redis Labs recently announced general availability of Redis Enterprise-powered tiers on Azure Cache for Redis, which are fully managed by Microsoft.