The Evolution of Business Communication and Rocket.Chat's Rise

Modern chat platforms, such as Slack, have fundamentally reshaped expectations for workplace communication. Now, a company aiming to redefine this landscape with an integrated, open-source solution is announcing new funding to accelerate its expansion.

Rocket.Chat: An Open-Source Communication Platform

Rocket.Chat, both a startup and the name of its open-source platform, is utilized by a diverse range of organizations – from banks and the U.S. Navy to NGOs and businesses of all sizes – to establish and manage secure virtual communication services.

These services extend beyond simple team chat, encompassing customer support, collaborative platforms for staff and external partners, educational settings, conferences, and more. The company has recently secured $19 million in funding.

Funding Allocation and Platform Expansion

The newly acquired funds will be strategically allocated to both customer acquisition and the enhancement of the platform’s capabilities. Key areas of development include bolstering security features, implementing a federated blockchain architecture, creating app marketplaces, expanding bot options, and integrating further with social media and omnichannel customer service systems. Potential facilities for virtual events are also being considered.

The increasing shift towards virtual business interactions has created opportunities for companies like Rocket.Chat to integrate a growing number of features into their communication platforms.

Investment Details

This Series A funding round was spearheaded by Valor Capital Group, with substantial support from Greycroft, Monashees, and NEA. Additional participation came from e.ventures, Graphene Ventures, ONEVC, and DGF.

Based in Porto Alegre, Brazil, and incorporated in Delaware, the startup has now raised a total of $27 million to date.

Investor Perspective

Antoine Colaço, Partner at Valor Capital Group, stated, “We’ve followed Gabriel and Rocket.Chat for years, consistently impressed by their open-source platform. It empowers organizations to securely manage their own chat tools with customized branding.”

He continued, “They’ve demonstrated the value of their platform through a global customer base, including major corporations and government agencies. We are excited to support their continued growth in customers and developers worldwide.”

Significant Growth and User Statistics

While Rocket.Chat is not disclosing its current valuation, the funding follows a period of substantial growth. The platform now boasts 16 million registered users across 150 countries, with eight million monthly active users.

Notably, 11.3 million users registered within the last six months. The platform is currently installed on approximately 845,000 servers and has attracted over 1,500 developers contributing to its ecosystem.

The Growing Importance of Open-Source Platforms

Rocket.Chat’s funding and expansion reflect a broader trend towards open-source platforms. The core promise of open source within enterprise IT lies in its ability to allow organizations to tailor a service to their specific needs.

Customization and Control

At the same time, it provides the tools necessary to ensure robustness in terms of security, extensibility, and overall suitability for a business environment. This has become a significant business opportunity as organizations demand more sophisticated IT services where off-the-shelf applications may fall short.

An All-in-One Communication Solution

Rocket.Chat positions itself as a comprehensive communication hub, enabling organizations to assemble their own customized services. It can be either self-hosted and managed by customers or utilized as a cloud-based SaaS.

Pricing ranges from free for minimal, self-hosted services to $4 per user per month, or higher, depending on the chosen services, hosting options, and platform usage.

Platform Interface and Functionality

The basic platform interface resembles Slack, but its true power lies in its ability to integrate with other communication channels for omnichannel customer service. Organizations can consolidate communications from various platforms within Rocket.Chat.

The collaboration platform builds upon the core chat interface, integrating alerts, links to frequently used applications, video calls, and more. These functions can interact with each other, streamlining workflows like ticket handoffs from customer service to technical support.

Privacy and Control Through Self-Hosting

Offering a self-hostable version provides organizations with greater privacy and control over their messaging data.

Diverse Customer Base

Rocket.Chat’s customer base is remarkably diverse, reflecting the growing demand for solutions that prioritize data control. CEO and founder Gabriel Engel highlights a list of clients including the U.S. Navy, Credit Suisse, Cornell University, UC Irvine, Bielefeld University, Deutsche Bahn, and numerous private companies. Former customers include Citibank and Arizona State University.

The Paradox of Open Access

However, this flexibility presents a challenge. It has been reported that the platform is also used by organizations with controversial agendas, such as Islamic State, to disseminate messages.

Engel acknowledges this issue, explaining that while the company actively works with authorities to address such instances, the self-hosted nature of the platform limits its ability to monitor usage. “There’s a reason why the U.S. Navy uses Rocket.Chat,” he stated. “It’s isolated from any external influence, for better or worse.”

Ethical Considerations

The dilemma of a privacy-focused platform being exploited for illicit purposes raises complex ethical questions. Whether technology can fully address this challenge or if government intervention is necessary remains a critical debate.

Investor Confidence

Despite these challenges, investors remain optimistic about Rocket.Chat’s potential as an alternative communication solution.

Dylan Pearce, partner at Greycroft, commented, “Organizations today require a secure communication platform to connect teams, engage with customers and partners, and foster safe communities. Rocket.Chat’s management team and open-source community are leading innovation in this space, offering a platform capable of serving the entire world.”