Data collaboration software startup Atlan has raised $105 million in a new funding round led by Singapore's sovereign wealth fund GIC and U.S.-based venture investor Meritech Capital. This significant investment values the company at $750 million, a substantial increase from its previous valuation of $450 million in March 2022. Atlan's existing investors, Salesforce Ventures and Peak XV Partners (formerly Sequoia Capital India), also participated in this round.
Founded in 2019 by Prukalpa Sankar and Varun Banka, Atlan originated as an internal project at SocialCops, a data company also started by the same founders. The startup aims to help large corporations prepare their databases for artificial intelligence (AI) integration. The company’s platform acts as a control plane, stitching together disparate infrastructure via catalogued metadata, likened to a GitHub for data teams.
The latest funding round brings Atlan's total capital raised to $206 million. This infusion comes at a time when software-as-a-service (SaaS) companies are receiving substantial investments, even though valuation multiples in the sector are decreasing. Reports indicate that other significant deals are in progress within the SaaS industry, including a $150 million round for contract management software provider Icertis and a $200-250 million funding round for healthcare SaaS startup Innovaccer. These developments reflect a broader reset in the SaaS ecosystem, where companies focused on specific sectors or use-cases show greater resilience.
According to Sankar, Atlan has experienced a massive increase in demand as enterprises invest more in AI and realize their data is not yet AI-ready. The company’s technology is well-positioned to assist these enterprises globally. Over the past two years, Atlan’s revenue has reportedly grown sevenfold, though specific figures have not been disclosed. The Singapore-based parent entity reported operating revenue of $1.8 million for the fiscal year ending in March 2022.
Atlan's customer base includes prominent firms such as Cisco, Autodesk, Unilever, Ralph Lauren, and Nasdaq. The startup competes with major technology services providers like Microsoft, Oracle, SAP, and IBM, as well as other well-funded startups including Hex, Collibra, and Alation.
With the new funds, Atlan plans to scale its operations significantly. The company will invest heavily in expanding its product and engineering teams, enhancing its capabilities, and improving its go-to-market strategies including customer service, sales, and marketing. A significant portion of the investment will be directed towards growing its workforce in India, where Atlan currently employs 150 people.
"Over the last couple of years, we’ve grown significantly, and that has driven the ability to say that we have a great product and are able to solve problems for some of the world’s largest companies so let’s now double down and scale,” said Sankar.
This strategic growth plan underscores Atlan's commitment to solidifying its position as a leading player in the data collaboration space, ensuring its readiness to meet the evolving needs of AI-driven enterprises.
