Algolia

Pre-IPO

Algolia allows developers to customize user search and recommendations across platforms.

Mark Price
$29.24 +140% a year
Annual Price chg.
+140%
Valuation
$2.25B
Funds Raised
$334M
Last Round
$150M 2021
Round Date
2021, D

About the Company

When you visit sites like Lacoste, Coursera, Twitch, or Under Armour and use search, you use Algolia. The company's product is something similar to a Google search for individual sites.

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Algolia provides a search engine API that works across platforms and devices. Algolia's API aims to allow developers to build, optimize, and personalize search and discovery experiences for their users.

Business Growth Phase

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Market Opportunities

Companies are adopting enterprise search to improve their operational efficiency by controlling large amounts of data. Global Enterprise Search market size stood at $4.46B in 2021 and is projected to reach $8.78B in 2027 with expected CAGR of 11.95% in terms of revenue.

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Algolia handles over 1.5 trillion search queries per year. The company serves more than 10,000 customers, including some big names, such as Slack, Stripe, Medium, Zendesk and Lacoste.

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Financials and Valuation

Since its inception Algolia has raised $334M in funding over 9 rounds. In July 2021 Algolia raised $150M from Lone Pine Capital, Glynn Capital, Fidelity Management and others at a valuation of $2.25B. Compared to the Series C round from October 2019, the company’s valuation has more than quadrupled.

The CEO reported revenue in 2018 amounted to $40M with GAGR 100%. Now the company doesn’t share revenue numbers directly, but says that its annual recurring revenue has increased by 180% year over year.

Risks

Algolia faces strong competition from a number of firms, including its closest rival Elasticsearch. This may negatively affect its long-term viability and valuation.

Low liquidity: investing in private companies at the pre-IPO stage is an opportunity to make money over a few years. If you exit early, the price may be significantly different from the purchase price or the selling process may take more than 1 month.