Grafana Labs Inc., a startup focused on commercializing the open-source Grafana observability platform, is reportedly in talks to lift latest capital.
The Information today cited sources as saying Singapore’s GIC sovereign wealth fund is predicted to steer the round. It’s unclear how much funding Grafana Labs’ hopes to lift. Nevertheless, the insiders did reveal that the deal is about to spice up the corporate’s valuation from $6.6 billion to $9 billion.
GCI previously backed a $270 million funding round for Grafana Labs in August 2024. The deal also included the participation of Alphabet Inc.’s CapitalG, Lightspeed, Sequoia and others. Large late-stage funding rounds almost at all times include contributions from a startup’s existing investors, which suggest at the very least a few of Grafana Labs’ high-profile backers may join the brand new raise that it’s reportedly negotiating.
Grafana Labs sells an observability platform based on the open-source Grafana project. The latter software can collect telemetry from an organization’s infrastructure and switch it into monitoring dashboards. A web-based retailer, for instance, could create a dashboard that tracks the performance of its e-commerce website and detects downtime.
Grafana Labs’ platform extends Grafana’s feature set with artificial intelligence capabilities. A tool called Sift Investigation can robotically analyze telemetry from a Kubernetes cluster to search out potential technical issues. Moreover, there’s a built-in chatbot that may provide latest users with tips on easy methods to use the platform. A developer could explain how a knowledge evaluation task is performed in a competing tool and have the chatbot explain easy methods to replicate the workflow.
Grafana Labs’ platform also lends itself to certain other use cases besides monitoring. It includes an implementation of k6, an open-source tool that tests applications’ reliability by generating a considerable amount of simulated traffic. Developers can use it to find out whether a newly deployed workload will perform as expected during usage spikes.
In accordance with The Information, Grafana Labs’ annual recurring revenue topped $400 million in September. That number stood at $250 million in August 2024.
The reported fundraising push hints that Grafana Labs has no plans to go public within the near future. That’s seemingly reaffirmed by the $150 million tender offer the corporate reportedly accomplished last yr. Tender offers enabled employees and early investors to access liquidity without waiting for a stock market listing.
If the round closes, it can also lower the possibility of an acquisition. Only a couple of firms and personal equity firms have the resources to buy a startup valued at $9 billion. Nevertheless, its rapid growth could nevertheless draw investor interest. Two years ago, Grafana Labs rival Latest Relic was taken private by Francisco Partners and TPG for about $6.5 billion.
Image: Grafana Labs
Support our mission to maintain content open and free by engaging with theCUBE community. Join theCUBE’s Alumni Trust Network, where technology leaders connect, share intelligence and create opportunities.
- 15M+ viewers of theCUBE videos, powering conversations across AI, cloud, cybersecurity and more
- 11.4k+ theCUBE alumni — Connect with greater than 11,400 tech and business leaders shaping the long run through a singular trusted-based network.
About SiliconANGLE Media
Founded by tech visionaries John Furrier and Dave Vellante, SiliconANGLE Media has built a dynamic ecosystem of industry-leading digital media brands that reach 15+ million elite tech professionals. Our latest proprietary theCUBE AI Video Cloud is breaking ground in audience interaction, leveraging theCUBEai.com neural network to assist technology firms make data-driven decisions and stay on the forefront of industry conversations.