(Corrects TPG headquarters in second paragraph.)
July 7 (Bloomberg) -- Box Inc., the cloud-storage provider that filed for an initial public offering earlier this year, has raised $150 million at a valuation of $2.4 billion from TPG Capital and Coatue Management LLC, according to people with knowledge of the situation.
The Los Altos, California-based startup, which was valued at $2 billion during its last financing in December, is set to announce the new fundraising as soon as today, said the people, who asked not to be identified because the information isn’t public. TPG, a Fort Worth, Texas-based private-equity firm, will also get a seat on Box’s board, the people said.
The money buys Box some time after it delayed its IPO amid a bumpy market, with the extra funds giving the company flexibility in the timing of when it will go public. The round also indicates investors are willing to bid up Box’s value in the private market, which creates more pressure on the company to hold a successful IPO at a later date.
Box, led by Chief Executive Officer Aaron Levie, filed to raise $250 million in an IPO in March. The company also disclosed that sales and marketing costs climbed 73 percent to $171.2 million for the fiscal year ended in January, 38 percent more than its generated revenue. The data fueled investor concern about the long-term viability of Box’s business model, which led the company to wait for better market conditions for its IPO.
Last month, Ashley Mayer, a spokeswoman for Box, said the company’s plan “continues to be to go public when it makes the most sense for Box and the market.”
Founded in 2005 by Levie and Dylan Smith while the two were still college students, Box is competing with fast-growing startups like Dropbox Inc., as well as some of the world’s biggest technology companies like Microsoft Corp., Google Inc., Apple Inc. and Amazon.com Inc. Like its competitors, it is going after a wide range of industries, from manufacturing to finance and media, where employees are sharing documents and data on a multitude of devices.
The Wall Street Journal earlier today reported the closing of Box’s round of financing.