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Slack planning to raise over $400m, bringing valuation to $7bn or more

Tim Maytom

Business messaging app Slack recently passed 8m daily active users, with 3m of them paying subscription fees to access additional features. To build on its rapid growth and success, the firm is reportedly planning a funding round that will bring the company's post-money valuation to at least $7bn (£5.43bn).

According to TechCrunch, Slack is looking to raise funding of $400m or possibly more, and add around $2bn to the firm's valuation. According to multiple sources, the round will be led by new investor General Atlantic, with another new backer, Dragoneer, possibly involved.

Slack's last valuation took place in September 2017, when SoftBank led a $250m investment round that brought the company's value to $5.1bn. A $400m investment would represent Slack's largest funding round to date, and would secure Slack's position as a leader in enterprise-focused messaging and social networking.

Slack boasts customers in 100 countries, with half its daily active users based outside the US. The UK, Germany, France, India and Japan are all strong international markets for the firm, and at home, 65 per cent of Fortune 100 companies make extensive use of its software, including eBay, IBM, 21st Century Fox and Capital One.

Slack isn't without competitors, with Google, Microsoft and Facebook all attempting to break into the enterprise messaging area, but the firm is beginning to aggressively defend the lead it has carved out. It recently acquired HipChat and Stride, two of its competitors, as part of a deal with owners Atlassian.