Slack Reportedly Raising Over $400M at an Impressive $7B Valuation

Aug. 8, 2018

One of the most popular cloud-based team collaboration tool and service, Slack, is reportedly planning to raiseover $400 millionin an upcoming round of funding at apost-money valuation of $7 billion or more. According to aTechCrunchreport, the app has been growing exponentially over the last couple of years and the company is now planning to capitalize on its 8 million strong user base with big funding.

The companyrecently acquiredHipChat and Stride, two competing productivity suites, for an undisclosed amount. Slack also revealed that both the services will be shut down by the end of the year, with all affected users being migrated over to Slack.Microsoft’s Teamsand Facebook’s Workplace are Slack’s main competition, both of which have picked up key customers in the market. WhileMicrosoft’s Teams reported reaching 200,000 paying organizationsearlier this year, Facebook’s Workplace has also managed to score prominent clients like Walmart.

It’s also worth noting that Slack hasruled out an IPOthis year and it’s expected that its latest round of finding will help the company gather enough cash to continue its growth spurt, while facing competition from other major players in the market. As of now, there’s no official information from the company about the funding and it declined to comment.