Data transformation startup Coalesce raises $50m Series B funding to accelerate innovation for data teams

Data transformation startup Coalesce raises $50m Series B funding to accelerate innovation for data teams

Published: 05-04-2024 06:40:00 | By: Pie Kamau | hits: 1627 | Tags:, the data transformation startup, has closed $50 million in Series B funding to drive growth and platform innovation. Industry Ventures and Emergence Capital led the round with participation from 11.2 Capital, Bob Muglia, DNX Ventures, GreatPoint Ventures, Hyperlink Ventures, Next Legacy Partners, Snowflake Ventures, and Telstra Ventures, bringing the company’s total funding to $81 million.

Fanni Fan, Principal, Industry Ventures: "We’ve had a front-row seat to Coalesce’s success, seeing them consistently outperform targets. Their customers regularly cite them as the most vital part of their data stack, and their mature partner ecosystem is impressive for their stage. Encouraged by this, we confidently led their Series B investment."

Since publicly launching in 2022, Coalesce has revolutionized data transformation within the ELT (Extract, Load, Transform) workflow on the Snowflake Data Cloud. By focusing on the crucial data transformation phase — the process of making raw data ready to use by cleansing, modeling, and documenting it — Coalesce ensures that quality data is primed for business intelligence and advanced analytics use cases. Its unique approach to data transformation helps data teams accelerate data pipeline development and improve data collaboration.

Saad Siddiqui, General Partner, Telstra Ventures: "The industry is moving from labor-intensive data engineering to automated, enterprise-grade solutions. Coalesce leads this shift, offering comprehensive extensibility for complex ETL/ELT scenarios and an easy-to-use interface for a wider, less technical audience."

For its fiscal year ending in January 2024, Coalesce saw over 4x growth in annual recurring revenue (ARR) year-over-year and received several industry accolades. This growth underscores the strong market demand and confidence in Coalesce's data transformation solutions, evidenced by adoption from major enterprises such as Caesars Entertainment Group, CKE Restaurants, Denny’s, Houlihan Lokey, and TotalEnergies.

Armon Petrossian, CEO and Co-founder, Coalesce: "During a challenging VC market period, we've successfully raised capital by demonstrating explosive growth and an innovative product that significantly enhances the efficiency of data teams. This achievement is a testament to our incredible team and valued customers, who are the pillars of our rising leadership in the industry.''

Post-Series B, Coalesce will concentrate on:Enhancing customer satisfaction through improved software scalability and performance, introducing AI-driven features plus new capabilities designed for broader audiences and boosting market awareness to ensure that every Snowflake customer seeking efficiency and scale knows about Coalesce.

Harsha Kapre, Director, Snowflake Ventures: ''Snowflake Ventures invests in our ecosystem partners to accelerate innovation. Coalesce is designed to complement the performance and scalability of Snowflake and is well positioned to harness the power of the Data Cloud. We see our customers embracing their intuitive interface to develop data pipelines efficiently, unlocking the true potential of their data without the usual engineering headaches.''