Grafana Labs, one of the leading providers of open-source and enterprise software for monitoring, observability, and data visualization, has announced the successful completion of a primary and secondary transaction totaling approximately $270 million.
The new funding transactions, which puts the company’s valuation at more than $6 billion, were led by Lightspeed Venture Partners, with participation from J.P. Morgan, Sequoia Capital, Coatue, GIC, Lead Edge Capital, and K5 Global. In addition, CapitalG joined the round as a new investor.
Grafana Labs’ previous funding was in April 2022, when it secured $240 million in a Series D round to facilitate aggressive product development and embrace a “big-tent” approach that allows users to compose and visualize data from any system.
The company describes the latest funding as an extension to the series D round. The funding will be used to accelerate Grafana Labs’ product development and help solidify its position as a leader in the data observability industry.
Grafana Labs is best known for Grafana Cloud, one of the most widely used open-source platforms for IT infrastructure monitoring. The platform works by collecting telemetry and operational data from the IT infrastructure and plots this data into graphs making it easy for customers to identify patterns and trends. It also offers interactive dashboards and real-time alerting.
Customers who prefer a self-managed platform can use the Grafana Enterprise, which includes all the features of the open-source Grafana, plus additional enterprise-grade features like enhanced security reporting options.
In addition to the new funding, Grafana Labs announced that it has moved past $250 million in annual recurring revenue, and now has more than 5000 paying customers, up from 2000 in 2022. The customer base includes major enterprises like Dell Technologies, Microsoft, Salesforce, and Citigroup.
The remarkable growth of Grafana Labs is attributed not only to the significant growth of the observability industry but also to the company’s strategic decisions and actions.
Grafana Labs has introduced tools that are specific to different IT infrastructure platforms. For example, it introduced the Kubernetes Monitoring module in Grafana Cloud to specifically monitor Kubernetes clusters.
The recent acquisition of an AI startup called Asserts.ai Inc. helped form the foundation for Grafana’s Application Observability offering, while the open-source Grafana Beyla project has enhanced observability within Kubernetes environments.
Grafana Labs was also featured in the Forbes 2024 Cloud 100 list and was recognized as a leader in the Gartner® Magic Quadrant™ for Observability Platforms.
“We’ve accomplished so much in the almost 10 years since Grafana Labs was established. The open source side project my co-founder Torkel Ödegaard created now has 20 million users worldwide and has become the foundation of a sustainable business and market leader in observability,” said Grafana Labs CEO and co-founder Raj Dutt.
“Beyond the impressive numbers, what I’m most proud of is that we have stayed true to our roots while diversifying our revenue sources. We believe with the right strategy, open source will win and we’re just getting started.”
According to Dutt, he is extremely proud that Grafana Labs has remained dedicated to its open-source roots over the past decade. He highlights the company’s commitment to nurturing an ecosystem where innovation and collaboration can thrive.
With the latest funding boost, Grafana can continue to pursue strategic mergers and acquisitions, expand its platform capabilities, introduce new features, and further grow its global customer base.
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