NEW YORK--(BUSINESS WIRE)--Grafana Labs, the company behind the world’s most ubiquitous, open, and composable operational dashboards, today announced the successful completion of a primary and secondary transaction totaling approximately $270 million in proceeds to the company and certain of its stockholders, along with several growth milestones that solidify its position as a leader in the observability industry.
New Funding Validates Strong Market Position and Accelerates Product Innovation
The transaction, which was an extension of its Series D financing at a valuation of over $6 billion, was led by existing investor Lightspeed Venture Partners, with participation from all existing institutional investors, including GIC, Sequoia Capital, Coatue, Lead Edge Capital, J.P. Morgan and K5 Global. Additionally, Alphabet's independent growth fund, CapitalG, joined as a new investor. The infusion of capital will accelerate Grafana Labs' product development, enabling the company to strengthen its market leadership while strategically pursuing future M&A opportunities.
“When Lightspeed first invested in Grafana Labs’ Series A in 2019, we were confident in the company's strategy. We knew that open source companies were rewriting the narrative, transitioning from merely free alternatives to releasing technology that rivals or surpasses proprietary solutions. Grafana exemplifies this shift—there's nothing that compares to their capabilities in operational dashboarding. They've been on a tear releasing so many new products and building what clearly is the strongest open source observability platform in the market,” said Gaurav Gupta, partner at Lightspeed Venture Partners. “Seeing the company exceed 5,000 paying customers and consistently deliver groundbreaking solutions for both open source and enterprise users is a testament to their vision and execution.”
Grafana Labs CEO and co-founder Raj Dutt adds, “We're grateful for the support from new and existing investors reinforcing their commitment to Grafana Labs during an uncertain market – we see this transaction and valuation as strong third-party validation of not just our trajectory, but also the opportunity at hand. I’m incredibly proud that we have stayed true to our roots over the past decade with open source at the heart of what we do at Grafana Labs, and we are committed to fostering a thriving ecosystem where innovation and collaboration flourish.”
Growth Milestones and Market Recognition
In August, Grafana Labs was named a Leader in the Gartner® Magic Quadrant™ for Observability Platforms. The recognition is based on Grafana Cloud’s Completeness of Vision and Ability to Execute. Grafana Cloud, the company’s fully managed, open and composable observability platform, allows organizations to bring together diverse data sources and own their own observability strategies. Over the past year, Grafana Cloud has introduced a range of new solutions that make it faster and easier to get up and running with observability, including application and frontend observability. Customers are saving time, reducing toil, and cutting costs with new AI/ML features such as Adaptive Metrics, which lowers bills by identifying and eliminating unused metrics through aggregation. These enhancements have significantly contributed to its rapid adoption, with Grafana Cloud now growing twice as fast as the self-managed version.
With the observability industry expected to experience significant growth in the coming years due to the increasing adoption of cloud-native technologies, more and more organizations are turning to Grafana Labs to help them manage the growing complexities of their infrastructure. The company has increased the number of paying customers in the past year to over 5,000. Customers span various industries and sectors, including companies like Citigroup, Salesforce, Dell Technologies, ASOS, and Microsoft.
New customer growth has also propelled Grafana Labs well beyond $250 million in ARR. The achievement not only cements Grafana Labs' position as a key player in the industry but also sets a strong foundation for continued growth and innovation in the years to come.
Grafana Labs’ product innovation and customer growth helped land the company on Forbes’ 2024 Cloud 100 list for the fourth time in a row, in the #23 spot. Published by Forbes in partnership with Bessemer Venture Partners and Salesforce Ventures, the Cloud 100 recognizes the most innovative and valuable private cloud companies based on market leadership, valuation, growth, and culture.
Grafana Labs received several other accolades recently, including inclusion on Redpoint's InfraRed 100 list and Silicon Valley Defense Group’s NATSEC100, while Grafana Cloud's "actually useful" free tier was named Best Observability Solution in DevOps.com's DevOps Dozen awards and open source Grafana was crowned one of 2024's Coolest Open Source Tools by CRN.
“We’ve accomplished so much in the almost 10 years since Grafana Labs was established. The open source side project my co-founder Torkel Ödegaard created now has 20 million users worldwide and has become the foundation of a sustainable business and market leader in observability,” said Dutt. “Beyond the impressive numbers, what I’m most proud of is that we have stayed true to our roots, while diversifying our revenue sources. We believe with the right strategy, open source will win and we’re just getting started.”
Gartner Disclaimer
Gartner, Magic Quadrant for Observability Platforms, Gregg Siegfried, Matt Crossley, Mrudula Bangera, Padraig Byrne, 12 August 2024
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About Grafana Labs
Grafana Labs provides an open and composable observability stack built around Grafana, the leading open source technology for dashboards and visualization. There are 5,000+ Grafana Labs customers, including Bloomberg, Citigroup, Dell Technologies, Salesforce, and TomTom, and 20M+ Grafana users around the world. Grafana Labs helps companies achieve their observability goals with the LGTM Stack, which features scalable metrics (Grafana Mimir), logs (Grafana Loki), and traces (Grafana Tempo) as well as extensive enterprise data source plugins, dashboard management, alerting, reporting, and security. The fully managed Grafana Cloud offering helps organizations get observability up and running easier and faster, with turnkey solutions for Kubernetes and infrastructure monitoring, incident response management, load testing, application observability, and more. Grafana Labs is backed by leading investors Lightspeed Venture Partners, Lead Edge Capital, GIC, Sequoia Capital, Coatue, J.P. Morgan, and CapitalG. Follow Grafana Labs on LinkedIn and Twitter or visit grafana.com.
