Slack's Growth Shows No Signs of Slacking

Slack, the company behind the popular cloud-based office communication and collaboration tool of the same name, appears to be on a run lately. First the company reached a partnership deal with its former competitor Atlassian, which is essentially an admission of defeat by the latter, and now it secured a new funding round pushing its value to $7 billion. According to TechCrunch, Slack is raising at least $400 million this round, which would make it the company’s biggest round to date.

The newly raised capital will help Slack defend its position in the market against powerful competition. Both Facebook (with Workplace) and Microsoft (Teams) have thrown their hat in the ring and while both companies have deep pockets, Microsoft looks particularly threatening considering its strong standing in the enterprise software and cloud solutions market.

Since its launch in 2013, Slack’s user base has steadily grown. In May 2018, the company had 8 million daily active users and 3 million paid users.