MongoDB Raises $80 Million in FinancingKelly Gilblom
MongoDB Inc., a maker of online database software, raised $80 million in funding as the company seeks to challenge Oracle Corp. and other software makers.
A sovereign wealth fund led the financing, and other investors included Goldman Sachs, Altimeter Capital, NEA, Sequoia and funds managed by T. Rowe Price Associates Inc. The deal values MongoDB at more than its previous valuation of $1.2 billion, according to Chief Executive Officer Dev Ittycheria.
Ittycheria, who has been CEO since September, said the company will use the funds to improve its database software products. MongoDB, the highest-valued startup based in New York, has attracted customers including Adobe Systems Inc., Amazon.com Inc., AT&T Inc. and EBay Inc. Including the latest round, MongoDB has raised a total of $311 million to date. While the company is eventually planning to sell shares to the public, an initial public offering is unlikely in 2015, Ittycheria said.
“This is about building a seminal technology,” Ittycheria said in an interview. “Whether we go public now or later we’ll continue to focus on product development.”
MongoDB -- a play on the word humongous -- markets its database software as easier to use and scale up than existing providers, making it better suited to the Internet age. MongoDB software has been downloaded more than 9 million times and is used by more than 2,000 customers, according to the company.
“The relational database no longer works,” Ittycheria said, referring to older database technology. “The market has reached a tipping point; this creates a massive opportunity.”
In December, MongoDB bought database-storage engine WiredTiger. Ittycheria said the company could do more deals with the new funding, though he said there aren’t any immediate plans to make an acquisition.