Slack's valuation is now $7.1 billion after Series H

Workplace collaboration platform Slack confirmed that it has raised $427 million in venture financing.

Workplace collaboration platform Slack just confirmed that it has raised $427 million in venture financing at a post-money valuation of $7.1 billion. The Series H round was led by Dragoneer Investment Group and General Atlantic.

Since April 2014, Slack -- which says it now has eight million daily active users and 70,000 paid teams -- has raised a staggering $1.27 billion in total funding.

Slack competes with Microsoft Teams and a bevy of incumbents and recent entrants to the workplace collaboration space. The key differentiator for Slack is that works across platforms, letting users do most of their work in one place because of the available plug-ins.

The company recently gobbled up the intellectual property of Atlassian's Stride and Hipchat platforms in a move that could help Slack fend off its much larger rival Microsoft.

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Slack said this latest funding round will give the company "even more resources and flexibility to better serve our customers, evolve our business, and take advantage of the massive opportunity in front of us." Translation: Slack is ensuring it has the financial wherewithal to maintain its edge in the highly competitive workplace communications market.

Read also: Microsoft says Teams is now at 'feature parity' with Skype for Business Online | Slack tips and tricks: Master the art of workplace collaboration | Microsoft introduces a free version of Teams, going head-to-head with Slack