Algolia, an API platform for search and dynamic experiences, has closed $150 million in series D funding led by Lone Pine Capital at a post money valuation of $2.25 billion.
The round includes funding from Fidelity Management & Research Company, STEADFAST Capital Ventures, Glynn Capital, Twilio, and existing investors, Accel, Salesforce Ventures, DAG, Owl Rock and World Innovation Lab.
“Search and discovery will continue to evolve and become increasingly intelligent, as more machine-learning capabilities are leveraged and coupled with the convergence of internal enterprise tools,” says Bernadette Nixon, CEO at Algolia. “This means that those digital touchpoints that a person accesses will learn and understand more about a person’s intent.”
The latest funding round brings Algolia’s total funding to $315 million. The company will use the fund to fuel global growth and support its more than 10,000 clients who use the platform to conduct more than 1.5 trillion searches annually.
As demand increases for search and recommendations, Nixon believes Algolia's future is in “API-first” services, as seen by the growth not only of Algolia, but companies like Twilio, Dropbox, and Stripe. A product-led strategy drives growth for these companies.
The idea is to solve its customers’ problems “beyond search with Algolia Recommend and Predict,” she says.
Algolia has gained more than 180% year-over-year net new annual recurring revenue (ARR) across more than 10,000 customers, fueled by demand for “building block” API software that increases developer productivity.
Earlier this year, the company announced its new vision for dynamic experiences, advancing beyond search to empower businesses to quickly predict a visitor’s intent on their digital property in real-time, in the session, and in the moment.
The business, armed with this visitor intent, can surface dynamic content in the form of search results, recommendations, offers, in-app notifications, and more — all while respecting privacy laws and regulations.
Algolia has also added seven leaders to its executive suite in the last 18 months, with the appointment of Nixon, CEO, formerly of Alfresco; as well as Michelle Adams. chief revenue officer, formerly of Dropbox; Carlton Baab, chief financial officer, formerly of Alfresco; Piyush Patel, chief business development officer, formerly of Capgemini; Jim Schattin, chief customer officer, formerly of Alteryx; Jason McClelland, chief marketing officer, formerly of Salesforce and Adobe; and Bharat Guruprakash, chief product officer, formerly of Twilio.