Box.com raises another $150M, bumping estimated value to $2.4B

Box.com raises another $150M, bumping estimated value to $2.4B

Summary: UPDATED x2: The delayed IPO for the enterprise cloud darling looks more promising following another round of last-minute funding.

SHARE:

Box.com's long-awaited initial public offering could be nigh -- and on more solid footing -- based on a new report.

The enterprise cloud storage provider has raised another $150 million in funding with help from private equity investment firm TPG and global public equity investment firm Coatue Management, according to The Wall Street Journal.

The extra cash flow should help tide things over until Box goes public, which has been delayed to what looks like this fall at the earliest now.

The Los Altos, Calif.-based company filed the S-1 paperwork with the U.S. Securities and Exchange Commission back in March. Morgan Stanley, Credit Suisse, and JPMorgan Chase have all been tapped as lead underwriters.

Describing itself as "emerging growth company," Box is following Twitter's path and headed to the New York Stock Exchange under the ticker symbol, "BOX," initially hoping to raise $250 million.

Box’s estimated worth has been pegged between $1.2 billion and $3 billion, based on a Wall Street Journal assessment back in December. That was amid completing a Series F round of venture capital fundraising, garnering $100 million.

Monday's WSJ report suggests that the valuation now stands closer to $2.4 billion.

Anticipation for this particular IPO had been growing steadily over the last year since co-founder and CEO Aaron Levie revealed plans to Bloomberg in January 2013. Rumors started to pick up during the fall of 2013, reaching a fever pitch at the end of January 2014 with speculation over a secret filing.

A few weeks prior to the S-1 release this past spring, Bloomberg then reported Box was planning to double its revenue this year to more than $200 million.

Box's revenue climbed 111 percent year-over-year to $124.2 million by the end of January 2014, according to the S-1 filing.

But there have been some notable net losses along the way: $50.3 million, $112.6 million and $168.6 million year-over-year for the 12-month time frames ending December 31, 2011, January 31, 2013 and 2014, respectively.

ZDNet reached out to Box.com for comment, and we will update this post once we hear back.

UPDATE: A Box representative responded to our request but declined to comment at this time.

UPDATE 2: Box confirmed the $150 million investment by TPG and Coatue in a press release on Monday afternoon. A Box spokesperson provided the following statement to ZDNet:

Our plan continues to be to go public when it makes the most sense for Box and the market. As always, investing in our customers, technology, and future growth remains our top priority. TPG and Coatue have great track records with growth companies like Box and we're excited to work with them as we execute on our strategy.

Topics: Enterprise 2.0, Cloud, Enterprise Software, Start-Ups, Tech Industry

Kick off your day with ZDNet's daily email newsletter. It's the freshest tech news and opinion, served hot. Get it.

Talkback

2 comments
Log in or register to join the discussion
  • So they are losing money?

    "Box's revenue climbed 111 percent year-over-year to $124.2 million by the end of January 2014, according to the S-1 filing.

    But there have been some notable net losses along the way: $50.3 million, $112.6 million and $168.6 million year-over-year for the 12-month time frames ending December 31, 2011, January 31, 2013 and 2014, respectively"

    they are selling a product that is losing value as larger cloud operations drive down the cost of cloud storage. I am not sure I see how they can survive as just a cloud storage provider given they haven't turned a profit and with larger cloud providers moving aggressively into cloud storage.
    Meansman
  • Don't see it much value

    I don't see much value with the current business model. Online storage is quickly becoming an add-on service and not a primary product. We'll be seeing a lot more things like the 1TB included with Office 365 with other products. Because it's an add-on product, the average usage per account will be much lower so it can be sold much cheaper.
    Buster Friendly