SnapLogic Raises $165M at $1B Valuation for Enterprise Integration

SnapLogic Secures $165 Million to Fuel Growth and AI Development

As digital transformation initiatives gain traction across numerous enterprises, and more organizations seek to modernize their legacy systems, SnapLogic – a company specializing in application and data integration, alongside workflow automation – has successfully completed a significant funding round. The company has secured $165 million in new capital.

These funds will be strategically allocated to further enhance the company’s product offerings, with a particular emphasis on the AI capabilities that power its platform, and to support broader business development efforts.

Valuation and Investment Details

SnapLogic has confirmed a valuation of $1 billion following this funding round. Sixth Street Growth spearheaded the investment, with the identities of other participating investors remaining undisclosed.

The company benefits from the support of established investors, including Arrowroot Capital (who previously led a $72 million round), Golub Capital, Andreessen Horowitz, Vitruvian, Capital One, Ignition Partners, Microsoft, and several others. To date, SnapLogic has raised a total of $373 million.

This new valuation represents substantial growth for the San Mateo-based company, which was previously estimated to be worth just over $300 million in 2019 during its last funding round, according to PitchBook data.

Market Position and Customer Base

This increase is directly attributable to the market segment SnapLogic occupies, its extensive customer base, and overall company size. The company primarily serves large organizations that heavily rely on data services, including prominent IT and technology firms, and major enterprises such as Adobe, Aramark, Drax, Emirates, Qualtrics, Magellan Health, Schneider Electric, Siemens, and Workday.

SnapLogic currently supports “thousands” of organizations, processing approximately 2.7 trillion customer documents each month across 3.1 million “pipelines.”

Competitive Landscape

SnapLogic operates in a competitive market alongside companies like Workato, Tray.io, and MuleSoft. Initially, SnapLogic distinguished itself by assisting businesses in integrating and utilizing data across diverse applications.

This proved particularly valuable for enterprises that had adopted a multitude of applications and architectures spanning multiple cloud environments, containers, data warehouses, and on-premise data centers, resulting in fragmented data silos.

Expanding into Automation

More recently, SnapLogic has significantly expanded its focus to include automation, recognizing the potential of AI and other tools to streamline repetitive tasks using integrated applications and data. The platform now provides both integration and automation capabilities from a unified interface.

Offering both integration and automation within a single platform simplifies procurement processes and potentially reduces overall costs, contributing to SnapLogic’s growth, according to the company.

CEO Statement

“The enterprise automation market is booming, and our latest funding is further validation of our growing momentum and product leadership in that space,” stated Gaurav Dhillon, CEO of SnapLogic. “Unlike point-to-point players, our focus on the enterprise will unlock the power of applications, data, and APIs. In the post-pandemic era, our customers will use AI and automation to revolutionize their hybrid workforces. With SnapLogic, hybrid- and multi-cloud enterprises can ensure their massive investments in public and private clouds, SaaS, cloud data warehousing, and APIs will pay off.”

Industry Challenges and Outlook

Despite the promising outlook, the IT integration and automation sector faces challenges. Salesforce, the owner of MuleSoft, recently acknowledged a “rough patch” attributed to staff turnover and slowing sales growth.

This could be due to increased competition, or a shift from rapid IT digital transformation projects towards a more measured and practical implementation phase.

However, investors remain confident in the long-term opportunity and the underlying trends that will continue to drive growth for companies like SnapLogic.

Investor Perspective

“Modern enterprises are democratizing access to data and applications and empowering business teams to use low-code, self-service technologies to build the solutions they need to work better and faster,” said Michael McGinn, partner and co-head of Sixth Street Growth. “SnapLogic’s seasoned management team, sound economic model, and sustainable growth plan put it in a great position to capitalize on the thriving enterprise automation sector and expanding hybrid workplace trends. We are pleased to lead this funding round and partner with SnapLogic to bring its market vision, unmatched platform, and robust partnerships to more enterprises around the world.”

Sixth Street Growth’s involvement is noteworthy, given its track record of backing successful startups that have either gone public or been acquired, including Airbnb, MDLIVE, Spotify, and Sprinklr. This raises speculation about SnapLogic’s potential long-term strategic options.