AAA Algolia inputs $150m at a $2.25bn valuation

Algolia inputs $150m at a $2.25bn valuation

Algolia, a US-based developer of advanced online search software, has secured $150m in a series D round featuring enterprise software producer Salesforce and cloud communications platform Twilio, valuing it at $2.25bn post-money.

Hedge fund manager Lone Pine Capital led the round, which included financial services and investment group Fidelity, Steadfast Capital Ventures, Glynn Capital and existing investors including venture capital firm Accel. Salesforce invested through corporate venturing arm Salesforce Ventures.

Founded in 2012, Algolia provides an API platform that enables organisations to make their websites and mobile apps more easily searchable for users, while optimising online customer experience, enhancing online engagement and increasing conversion rates.

Clients can upload the data they would like to prioritise and tailor specific data points or factors such as the likelihood of a sale. The funding will support the company’s expansion of its product into adjacent markets and additional use cases.

The round brings Algolia’s overall funding to date to $315m, it said. It collected $110m in a late 2019 series C round led by Accel with contributions from Salesforce Ventures, Alven Capital, DAG Ventures, Founders Circle, Owl Rock Capital, SaaStr Fund and World Innovation Lab.

Accel also led the company’s $53m series B round, which featured Alven Capital, Point Nine Capital, Storm Ventures and SaaStr, in 2017, as well as an $18.3m series A two years earlier that was backed by Alven Capital, Point Nine, Storm Ventures, Lead Edge Capital and various angel investors.

Algolia had previously raised $2.8m in seed funding in 2014 from Storm Ventures, Alven Capital, Point Nine, Index Ventures and 500 Startups, after taking part in accelerators run by The Family and Y Combinator.