San Francisco based Slack Technologies Inc. raises $250 million funding round led by SoftBank Group Corp.’s Vision Fund, valuing the startup at $5.1 billion.
According to the reports, Slack will be utilising the funds for expansion in an increasingly competitive market for workplace messaging services. The Vision Fund was joined by Accel and other investors, Slack said on Sunday.
Slack, which originally pitched as a dead-simple collaboration tool, is now looking to become more of a go-to for larger businesses as it faces a very competitive field with products from Microsoft and Atlassian. Slack earlier in this month reported that it has more than 6 million daily active users and has crossed around $200 million in annual recurring.
After raising around $100 billion, as reported by Bloomberg, SoftBank’s Vision Fund is now dumping that enormous amount in some of the biggest startups in Silicon Valley- not to forget its earlier investments of $4.4 billion in co-working space company WeWork in August as reported by Pixr8, and is mulling an investment in Uber Technologies Inc. of up to $12 billion with three other investors as per Bloomberg’s report.
In the past month, Vision Fund also invested $2.5 billion in the Indian e-commerce giant Flipkart after the acquisition of Snapdeal by Flipkart didn’t work out.