Redis Labs Gets $110 Million, Will Expand In-Memory Database
Database firm Redis Labs has scored $110 million in Series G funding at a valuation of over $2 billion as it joins other cloud-capable database vendors shuttling their way rapidly to IPO or acquisition.
Redis Labs, based in Mountain View, Calif., and founded in Tel Aviv in 2011, bases its products on the open-source in-memory database Redis. Its solutions include Redis Enterprise, an on-premises database for real-time processing of data in systems calling for high performance. Redis Labs also offers Redis Enterprise Cloud, a cloud-native managed database-as-a-service (DBaaS) integrated for use on AWS, Microsoft Azure, and Google Cloud Platform in single-cloud, hybrid, or multi-cloud environments.
Redis Enterprise and Enterprise Cloud have the ability to process data in memory while at the same time ensuring persistence, or data retrieval even in the event of power outage. These features have made Redis Labs a recognized name among a claimed 8,000 customers worldwide. Applications include artificial intelligence (AI), analytics, finance, entertainment, Internet of Things (IoT), retail, e-commerce, security, communications, and other areas where data must be processed and accessed quickly and economically. Some customer names: GAP, Home Depot, Fiserv, Dell Technologies, Redfin, and eHarmony, to name just a few.
In-Memory Databases Now a Cloud Standard
The popularity of persistent, in-memory databases has risen dramatically in the past several years. The move to cloud-based applications has only accelerated the technology’s adoption, particularly since better performance equates to cost savings in cloud scenarios. “We founded Redis Labs with the idea that the future of the database market would be defined by performance,” said Ofer Bengal, co-founder and CEO at Redis Labs, in a statement today.
Other vendors have had similar ideas. Competitors to Redis Labs abound, including Software AG’s Terracotta, VMware (VMW), and Couchbase (one of the Futuriom 40 top private companies), along with a range of open-source implementations. Cloud providers such as Microsoft (MSFT) and Oracle (ORCL) have their own in-memory database products. Still, many of these vendors have joined the ecosystem of Redis Labs and those of other vendors. A rising tide lifts all boats, and integration of developer-oriented products such as those from Redis Labs with the applications they’re meant to serve is key to sales growth.
Bright Future Ahead
Given demand for Redis Labs’ solutions, the future looks bright for the 10-year-old firm. And as clouds meet telecom 5G at the network edge, the need for speedy data management will only increase.
Interestingly, the founders of Redis Labs have telecom networking backgrounds: CEO Bengal founded and led RIT Technologies (RITT), which made telecommunications and data communications systems for large carriers. Co-founder and CTO Yiftach Shoolman was founder and CTO of Crescendo Networks, which was acquired by F5 (FFIV) in 2011. Earlier, Shoolman also was VP of software development at Native Networks, which made optical Ethernet transport solutions for carriers and was acquired by Alcatel (ALU) in 2005. Clearly, the Redis Labs team understands the ways in which 5G will catalyze cloud-based environments.
Funding Details
Redis Labs’ round of $110 million was led by new investor Tiger Global, with participation from another new investor, SoftBank Vision Fund 2 and existing investor TCV. Other existing investors include Bain Capital Ventures, Francisco Partners, Goldman Sachs Growth, Viola Ventures, and Dell Technologies Capital, though it’s not clear whether they participated in this round. Redis Labs’ total raised to date is $347 million.
Besides the funding, Tiger Global, SoftBank, and TCV purchased additional shares in Redis Labs as part of a secondary transaction valued at $200 million. Surely that signals confidence, whether or not an IPO is imminent.