Coalesce raises $50M in funding to revolutionize data transformation for data teams – Tech Startups

With over 300 million terabytes of data created each day, data has become the lifeblood of modern enterprises, driving critical decision-making processes and powering innovative solutions. However, the raw data generated by various sources is often fragmented, inconsistent, and unstructured, making it challenging to derive actionable insights. This is where data transformation emerges as a pivotal process, bridging the gap between raw data and valuable insights.

Enter Coalesce.io, a data transformation tech startup at the forefront of revolutionizing data transformations for scalable data teams. With decades of experience in the data space, its founding team witnessed firsthand the struggles of world’s largest companies in managing complex data warehouses. That’s why the company has developed a solution to innovate data transformation and increase productivity and time savings fivefold for data teams.

As part of the effort to grow its platform, Coalesce announced today it has successfully closed a $50 million Series B funding. The round was led by prominent investors Industry Ventures and Emergence Capital, with contributions from a robust consortium including 11.2 Capital, Bob Muglia, DNX Ventures, GreatPoint Ventures, Hyperlink Ventures, Next Legacy Partners, Snowflake Ventures, and Telstra Ventures. This injection of capital brings Coalesce’s total funding to an impressive $81 million.

Founded in 2020 by Armon Petrossian and Satish Jayanthi, Coalesce is at the forefront of revolutionizing data transformations for scalable data innovation. Recognizing the pivotal role of data transformation in the analytics lifecycle, the company has developed a solution that automates SQL coding without compromising flexibility. Coalesce’s platform enhances data team efficiency, enabling faster data pipeline development and management, and empowering organizations to extract maximum value and insights from their data.

Fanni Fan, Principal at Industry Ventures, expressed confidence in Coalesce’s trajectory, stating, “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 its public launch in 2022, Coalesce has been a game-changer in data transformation within the ELT (Extract, Load, Transform) workflow on the Snowflake Data Cloud. By zeroing in on the pivotal data transformation phase — the process of refining raw data for business intelligence and advanced analytics applications through cleansing, modeling, and documentation — Coalesce ensures that quality data is primed for action. Its unique methodology accelerates data pipeline development and fosters improved data collaboration, earning accolades from industry leaders and organizations alike.

Saad Siddiqui, General Partner at Telstra Ventures, remarked on Coalesce’s pivotal role in the industry’s transition towards automated, enterprise-grade solutions, noting, “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 the fiscal year ending January 2024, Coalesce witnessed a remarkable 4x growth in annual recurring revenue (ARR) year-over-year, accompanied by industry recognition. This robust growth underscores the soaring market demand and unwavering confidence in Coalesce’s data transformation solutions, evident in adoption by major enterprises including Caesars Entertainment Group, CKE Restaurants, Denny’s, Houlihan Lokey, and TotalEnergies.

Petrossian reflected on the company’s success amidst challenging market conditions, stating, “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.”

With the fresh capital infusion from the Series B round, Coalesce is poised to enhance customer satisfaction through improved software scalability and performance. The company plans to introduce AI-driven features and new capabilities tailored for broader audiences while ramping up market awareness to ensure every Snowflake customer seeking efficiency and scale is aware of Coalesce’s offerings.

Harsha Kapre, Director of Snowflake Ventures, emphasized the symbiotic relationship between Snowflake and Coalesce, stating, “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.”

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• Source: https://techstartups.com/2024/04/04/coalesce-raises-50m-in-funding-to-revolutionize-data-transformations-for-data-teams/