Box Inc. has managed to raise an additional $150 million (€110.4 million) in funding from private-equity firm TPG and hedge fund Coatue Management, which comes at the perfect time, since the company is heading towards an initial public offering.
The extra funding brings up Box’s value at about $2.4 billion (€1.76 billion), the Wall Street Journal reports, quoting people familiar with the issue. TPG has earned itself a seat on the Box board, which is quite convenient as the big moment approaches.
The first quarter revenues of Box were quite good, as the company managed to nearly double its previous results, climbing to $45.3 million (€33.3 million). According to the amended prospectus filed by Box on Monday, its net loss for the year’s first three months reached $38.55 million (€28.36 million), up from $34.12 million (€25.1 million) in the same period of 2013.
Even as the company heads for the stock market, it has warned everyone that it is not expecting to become profitable in the foreseeable future, despite its rapid growth. In fact, the rapid growth can be blamed for this situation, since the company spent quite a bit to secure clients.
Box is a free cloud storage and file-sharing service that enables people to safely share and access files online. Users have up to 50 GB of free storage for personal accounts, while bigger storage options are available for a monthly fee.