Microsoft has admitted Slack is a direct competitor to Office and more specifically Microsoft Teams. Still, with Skype for Business and Teams, Microsoft leads the workplace chat market and has given its rival plenty to think about in recent years. Still, Slack has shown it can thrive alongside Microsoft and has even continued to grow. Following its acquisition of rival HipChat last month, Slack has this week announced a new funding round. The company drew a massive $427 million from a funding round led by Dragoneer investment Group and General Atlantic. The take away from round is that Slack has now surpassed a market value of $7 billion ($7.1 billion) and is now better placed to compete with Microsoft. When discussing the successful round, Slack took the time to discuss its overall platform growth. Now with 8 million daily active users (DAUs), Slack has increased its DAUs from 6 million last September. There are now 70,000 paid teams using the service, up from 50,000 a year ago. Many analysts have been looking at the prospect of Slack being acquired by a bigger company. However, with valuation increasing, the chance of that happening is lowering. Amazon has previously been linked with a purchase of Slack but would have to pay over market valuation to do so. Is Slack worth a $10 billion investment for a larger company?
Slack Regroups for Microsoft Teams Fight with Successful Funding Round
Slack has announced a $427 million investment round that now leaves the company with a value of over $7 billion. Now better poised to compete with Microsoft, the success may make Slack less desirable to potential acquisition.