Ultra-fast file system software supplier WEKA is now a unicorn following $140 million in funding at a $1.6 billion valuation.
Its total capital funding now stands at $375 million. The cash is not actually needed to pay for any business expansion or product development, with WEKA saying it will augment its “considerable cash reserves” giving it ample options for how it can scale its business while expanding its investments in developing its data platform software and providing liquidity to WEKA employees.
CFO Intekhab Nazeer said : “It was an opportune time to fortify our cash reserves, allowing our investors to increase their position in the company while minimizing share dilution for our employees.”
The company says it is enjoying hyper-growth, and has over 300 of the world’s largest AI and GPU deployments running on its WEKA Data Platform software. Nazeer said: “The recent acceleration of generative AI and enterprise cloud adoption has triggered a sharp increase in customer demand, driving an unprecedented number of eight-figure ARR deals – an impressive feat when you factor in that WEKA is a software-based business.”
WEKA said the round was oversubscribed, with combined primary and secondary transactions, led by existing investor Valor Equity Partners. All other round participants were existing investors, which includes Nvidia. Antonio Gracias, founder, CEO, and Chief Investment Officer of Valor, will join WEKA’s board.
The demands of GenAI on file system software, which is needed to pump data at high speed to training GPUs so they can work at full throttle, has led investors to invest heavily.
Investor Gavin Baker, Managing Partner and Chief Investment Officer, Atreides Management, indicated this, saying: “WEKA unequivocally increases the utilization rate of GPUs for both training and inference. The AI companies with the highest GPU utilization rates should be able to choose between faster time to market, lower cost or higher quality than competitors with lower GPU utilization rates.”
WEKA last raised cash in 2022, with a $75 million C2 round and a $135 million D Series. Co-founder and CEO Liran Zvibel said: “The continued backing of this pre-eminent group of investors speaks volumes: WEKA is building something truly transformative that modern data-driven organizations need now, more than ever.”
Everyone involved is hoping for a vast IPO payday when WEKA goes public.
