GIC-backed software startup Grafana seeks funds at US$5b valuation: sources

[NEW YORK] Software maker Grafana Labs is in talks to raise new funding at a valuation of at least US$5 billion, a steep increase from the US$3 billion it reached 7 months ago.

The enterprise-technology business is in talks with existing investors including Sequoia Capital, Coatue Management, Lightspeed Venture Partners, Lead Edge Capital and GIC regarding the capital raise, said the people, who asked not to be identified discussing private information. GIC is in discussions to lead the round, which could total US$250 million to US$275 million, some of the people said.

Proceeds may be used toward mergers and acquisitions, one of the people said. Terms, including the company's valuation, aren't finalised and could still change. Grafana could potentially be valued at US$6 billion, some of the people said.

A representative for New York-based Grafana declined to comment, as did spokespeople for Sequoia, Coatue and Lead Edge. GIC and Lightspeed representatives didn't immediately respond to requests for comment.

Led by co-founder and chief executive officer Raj Dutt, Grafana said last August that it raised US$220 million in a funding round led by Coatue and Sequoia.

The company works with customers including JPMorgan Chase & Co and PayPal to help visualise their data in dashboards that allow for better monitoring. Bloomberg LP, the parent company of Bloomberg News, is also a Grafana customer.

Grafana competes in part against companies including Datadog and Splunk. BLOOMBERG