SingleStore Raises Additional $36M To Grow Its Database Business

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One stop shop, a database provider for cloud and on-premise applications and analytics, announced today that it has raised an additional $40 million, expanding its Series F from $82 million to $116 million. The new cash brings the company’s total fundraising to $378 million, which CEO Raj Verma says is being used to develop products and increase SingleStore’s headcount from nearly 400 to 485 by the end of the year.

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Goldman Sachs led the expansion of the SingleStore Series F with participation from Sanabil, Dell Technologies Capital, Google Ventures, Hewlett Packard Enterprise, Rev IV, IBM and Insight Partners. It comes as SingleStore brings in new CFO Brad Kinnish, who came through Aryaka Networks and Deutsche Bank, where he was managing director of investment banking software.

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The fundraiser may reflect the growing demand for platforms that provide flexible storage and processing of data. One increasingly popular application is big data analytics, or the process of examining data to discover patterns, correlations, and trends (such as customer preferences). According to one recent pollthe number of firms investing more than $50 million a year in big data and AI initiatives rose to 33.9% in 2019. The same survey showed that the vast majority of companies believe that data and analytics are key to their organization’s digital transformation initiatives.

As a result, there has been a growing interest in the enterprise in extracting insights from data in real time, a capability provided by SingleStore. According to Fivetran interview, 82% of companies make decisions based on outdated information. Eighty-five percent of the companies that took part in the survey said that this leads to poor decisions and loss of revenue. Real-time databases promise to solve this problem.

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SingleStore was founded as MemSQL in 2011 by Eric Frankil, Adam Prout and Nikita Shamgunov. Frankil was an engineer at Meta, developing partnerships, specifically on the Facebook platform. Prout was a software engineer at Microsoft and was involved in the development of the company’s SQL Server product, while Shamgunov worked at Microsoft and Meta as a senior software engineer and infrastructure engineer, respectively.

Verma became CEO in 2020 after serving as co-CEO for a year.

SingleStore technology is known as a relational database, meaning it uses a row and column structure to identify and access data in relation to other pieces of data in the database. This is different from a non-relational database, which has a storage model that is optimized for the type of data it stores. Otherwise, like any database system, SingleStore accepts requests (for example, for a user profile, image, video, or document) in the form of requests for the data contained in the database, and processes these requests, which may come from applications, web sites or elsewhere. to return the results.

The provider allows clients to perform transactions and real-time analytics in a single database. Clients using the platform can integrate, track, and query their data as a single entity, whether that data is stored in one or more repositories. SingleStore claims that by separating storage and computing, its database platform can process a trillion rows per second, ingest billions of rows of data per hour, and host databases with tens of thousands of tables.

“SingleStore provides unparalleled scalability by separating computing across separate applications such as operational analytics and real-time machine learning without these workloads interfering with each other. Workloads run on shared databases, minimizing unnecessary data movement, cost, and complexity,” Verma told TechCrunch via email. “[It also] allows clients to use all the cores on their machines to process a single request… at the cost of maximizing CPU usage.”

Among other competitors, SingleStore competes with MeanOracle, Snowflake and MongoDB for market share of relational database services. But the company has done well, launching joint solutions with major enterprise partners such as Dell and IBM. Verma says SingleStore’s annual recurring revenue is approaching $100 million and has a customer base of about 300 brands, including Hulu, Uber and Comcast. Operating revenue for fiscal year 2022 is approximately $50 million.

Part of SingleStore’s Growth Driven by Pervasive and Continued Migration to the Cloud – Gartner predicts that by 2022, 75% of all databases will be moved to the cloud. According to Verma, new customer acquisition increased by 300% for the company’s cloud service, and cloud computing revenue grew by 150%.

“SingleStore is well positioned to withstand all kinds of obstacles,” Verma said when asked about coming economic hurdles. Judging by the financial data he disclosed, this seems to be true.

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