US cloud storage provider Backblaze eyes US$1b valuation in IPO: sources

[NEW YORK] Backblaze is seeking to hire investment banks for an initial public offering (IPO) in 2021 that could value the cloud storage and backup software provider at around US$1 billion, people familiar with the matter said on Friday.

San Mateo, California-based Backblaze is aiming to complete its IPO early next year, the sources said, requesting anonymity as the plans are private.

The sources cautioned that the plans are subject to change and market conditions. Backblaze, which is backed by venture capital firm TMT Investments, declined to comment on the IPO discussions.

Backblaze, led by co-founder Gleb Budman, started in 2007 selling backup software to consumers and companies, and has since expanded into offering cloud storage services which is now the fastest-growing part of its business.

In cloud storage, it competes with the likes of Amazon.com's Amazon Web Services, although Backblaze targets smaller companies.

Backblaze said earlier this year it now stores one exabyte of customer data, which is the equivalent of more than 4,000 times the information stored in the US Library of Congress, according to a 2011 McKinsey study.

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The IPO plan coincides with the Covid-19 pandemic driving more businesses to operate digitally and rely on cloud computing for more of their workflow.

The global market for cloud storage services is expected to grow from US$50.1 billion this year to US$137.3 billion by 2025, according to market research firm MarketsandMarkets.

The US market for IPOs has been on a tear in 2020, fuelled by a buoyant stock market, with more than US$65 billion sold in stock, up almost 40 per cent from the total for all of 2019.

REUTERS