Redis Nabs $110 Million in VC Funding as Deployments Grow
Following the latest Series G round of funding in the amount of $110 million, NoSQL database vendor Redis Labs is worth more than $2 billion, the company announced today. That additional venture funding will help the company to continue positioning the product as a versatile real-time data platform for the cloud.
Redis Labs is the commercial vendor behind the open source Redis database, which built a reputation early in its existence for providing a very fast, in-memory key-value store. The high-performance cache remains central to the Redis offering, but in recent years, Redis Labs has broadened its repertoire as a multi-modal database.
Redis Enterprise includes modules for search, time-series, graph, JSON, AI and Bloom (for a probabilistic data). Similarly, Redis has adopted additional data structures beyond the basic key-value pairs, like strings, sets, lists, hashes, bitmaps, hyperloglogs, geospatial indexes, and streams.
At the same time, Redis Labs has been particularly attuned to the shift to cloud deployments, which it sees as a good fit for its database, particularly with its ability to run as a cloud-native cloud service atop Kubernetes. The company is positioning Redis Enterprise as a way to manage data in hybrid and multi-cloud deployments, with five 9 availability and support for active-active deployments.
This speed and versatility enables Redis Enterprise to fit into a range of use cases, including things like fraud detection, real-time inventory management, and posting of leaderboards in industries like financial services, retail, and healthcare. All told, Redis Labs claims to have more than 8,000 paying customers, including 31% of the Fortune 500. With a trailing three-year CAGR of 54% and a net retention rate north of 120%, indicating a successful “land and expand” strategy.
This growth makes Redis Labs interesting to investors. Before the funding round announced today, the Mountain View, California-based company had raised $245.6 million across eight funding rounds, according to Crunchbase. Bain Capital Ventures, Viola Ventures, Goldman Sachs, and Francisco Partners invested the bulk of the capital going back to the Series A in 2013.
Today’s Series G funding round of $110 million was driven by Tiger Global, a New York City firm that invests in public and private companies. It also included participation from another new investor, SoftBank Vision Fund, and TCV, which was an existing investor. Those three firms also acquired additional ownership as part of a $200 million secondary transaction, the company announced.
Redis’ in the speed and cloud departments were central to the investment decision of Tiger Global Management, indicates John Curtius, a partner at the firm.
“Companies are increasingly looking for ways to leverage the efficiency and flexibility of the cloud to drive their business forward and Redis Labs is the best partner for them in this journey,” Curtius stated in a press release. “Redis Labs has developed a real-time data platform to solve for low-latency requirements of business-critical applications and the go-to-market strategy to succeed alongside the cloud hyperscalers.”
It’s all part of Redis plans to become the de facto real-time data platform for cloud and on-prem deployments, says Ofer Bengal, Redis Labs co-founder and CEO.
“We founded Redis Labs with the idea that the future of the database market would be defined by performance, where Redis excels,” he stated in a press release. “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 is gearing up to host its RedisConf 2021in two weeks. The conference, which will be held April 20 and 21 online, is expected to attract 5,000 Redis community members. To register for the event, which will feature a hackathon with $100,000 in prize money, go to redislabs.com/redisconf/.