Databricks secures $1.8 billion in funding

"Databricks has taken a major step toward strengthening its financial position. The company behind the well-known data and analytics platform has raised $1.8 billion in new financing through the credit market. This increases its access to capital at a time when the company is heavily investing in further scaling and investments in data and AI technology. The financing was confirmed by both Bloomberg and CNBC."

"The financing consists of an extension of existing credit lines. For example, a previously agreed term loan has been significantly increased, and Databricks now has a much larger revolving credit facility than before. The loans have a relatively short term and are linked to variable interest rates, which indicates that the company sees the financing primarily as a flexible buffer and not as long-term debt."

Databricks raised $1.8 billion in new credit-market financing to increase its access to capital while scaling data and AI investments. The financing extends existing credit lines, significantly enlarges a term loan and expands the revolving credit facility. Loans are short-term and carry variable interest rates, suggesting a flexible liquidity buffer rather than long-term leverage. The transaction was arranged by a mix of traditional banks and private lenders, and Databricks did not comment publicly. The company previously secured several billion through equity, including secondary share sales for employee liquidity. Total debt now exceeds $7 billion amid combined equity and loan funding.

Read at Techzine Global