Loom offers an ‘instant video messaging option,’ one of the essential tools that hybrid workplaces need in today’s world. The company closed a funding round that took its valuation to $1.53 billion, four times higher than the last year.
Andreessen Horowitz led the investment round for $130 million, and the participants were Sequoia Capital, General Catalyst, Coatue Management, Iconiq Capital, and Kleiner Perkins.
Loom allows people to record and share videos for work conveniently. It has gained customers like Atlassian Corp. Netflix Inc. and Twitter Inc., the company, are growing at a rapid pace. Presently, the company has over 10 million users and more than 120,000 companies that use its product. The company has an unbelievable active user base that is increasing at a rate of 900% year-over-year. The company generated $5.9 million in revenue in the last year. It has surpassed 100 million videos in Feb 2021.
With some helpful tools like removing fillers from the video transcript, cam bubble for recordings, closed captions, and many others, the company makes effective products available for users. Due to the pandemic, people drifted towards the digital base. The video conferences, online classes, reporting, and several other jobs have quickly accepted digital platforms. It makes it easy to augment meetings, share updates, and communicate with clients and customers in different departments.
Similar digital platform Zoom Video Communications Inc., The most prominent video communication company, boosted revenue to $2,651.4 million for the fiscal year 2021, reporting 326 percent year-over-year.
Loom also has significantly grown due to the remote work conditions. However, Loom helps people record and send messages; it is not apt for real-time communication.
Last year in May, the company got a valuation of $350 million in a funding round. As per the company’s CEO, Thomas, the market opportunity prevailed even before the pandemic, but the demand grew for the product last year. The company is benefiting from the organic growth of customers, and the previous year’s growth for a business application is exceptional.
The company plans to use the recent funds in research and development and product innovation. Companies with distributed teams can benefit from the tools by staying aligned, improving productivity, and performing better.