Data connectivity startup CData Software raises $350M in growth equity funding led by Warburg Pincus

CData Software, a provider of data connectivity solutions startup, has raised close to $350 million in growth equity financing. The funding round was led by U.S. private equity giant Warburg Pincus, with significant participation from Accel. This capital infusion comes at a pivotal time when enterprises are increasingly relying on robust data processing capabilities to support their AI strategies.

CData plans to use the funding proceeds to accelerate its investments in developing innovative data integration solutions, enhancing operations, advancing product development, and expanding its go-to-market strategy.

Updata Partners, a technology-focused growth equity firm based in Washington D.C., which had previously invested $140 million in CData’s Series A in 2020 and Series B in 2021, will maintain its position as a significant investor in the company.

While CData has not disclosed its current valuation, a source close to the deal revealed it to be over $800 million. Accel, a renowned venture capital firm, also participated in this funding round.

CData has reported a remarkable growth rate of over 40% year-over-year and anticipates reaching $100 million in annual recurring revenue (ARR) by the end of this year. This impressive performance has attracted renewed interest from investors keen on supporting fast-growing software companies.

“Today marks a significant milestone for CData. Since our founding, we have consistently pushed the boundaries with our innovative solutions, enabling seamless data connectivity across various platforms,” said Amit Sharma, co-founder and CEO of CData. “Data access is pivotal for any AI, ML, or advanced analytics strategy, yet it remains a significant challenge for many organizations. With the extensive experience of Warburg Pincus and Accel, we are well-positioned to excel in our next phase, bringing state-of-the-art solutions to the market and supporting our customers’ modern data initiatives.”

Founded in 2016 and based in North Carolina, CData offers self-service data products and connectivity solutions that facilitate real-time data access from both on-premises and cloud applications. More than 7,000 organizations, including Office Depot, Holiday Inn, and FedEx, rely on CData to tackle their most challenging data connectivity issues.

In addition, hundreds of major data management providers and independent software vendors (ISVs) such as Google, Salesforce, and Informatica, embed CData technologies into their platforms to meet their expanding data integration needs. To further its mission of simplifying data connectivity for enterprises, users, and applications, CData remains committed to investing in operations, product development, and go-to-market strategies.