monday.com targeting over $6 billion valuation in Nasdaq IPO
Salesforce.com’s investment arm and Zoom Video Communications have each agreed to buy $75 million of the Israeli startup’s shares in a private placement
Israeli work operating system monday.com is aiming for a valuation of more than $6 billion in its U.S. initial public offering, according to a regulatory filing on Tuesday.
The company, with backers including venture capital firm Sapphire Ventures and investment manager Hamilton Lane, plans to sell 3.7 million shares for $125 to $140 apiece, raising up to about $518 million.
Salesforce.com’s investment arm and Zoom Video Communications have each agreed to buy $75 million of monday.com’s shares in a private placement, the company said.
monday.com co-founders Eran Zinman (right) and Roy Mann. Photo: Courtesy
monday.com was valued at $2.7 billion after its last funding round, Bloomberg News reported in May last year.
The Tel-Aviv-based company has developed a work operating system (Work OS) where organizations of any size can create the tools and processes they need to manage every aspect of their work. It was founded in 2012 and is led by co-Chief Executive Officers Roy Mann and Eran Zinman.
Goldman Sachs, J.P. Morgan, Allen & Co and Jefferies are among the underwriters for monday.com’s IPO. It will list on Nasdaq under the symbol “MNDY”.
The company’s revenue rose 85% to $59 million in the three months ending March 31, its filing showed. Net loss, however, widened to $39 million from $19.9 million in the same period.
monday has raised $234 million to date, from investors including Sapphire Ventures, Hamilton Lane, HarbourVest Partners, Ion Asset Management, Vintage Investment Partners, Stripes Group, Insight Partners and Entrée Capital. According to the company, it has over 127,000 paying clients in around 200 business verticals.
The company said it employed 799 people as of the end of March, an increase of 199 from January 2019.
monday's biggest shareholder is U.S. fund Insight Partners, which holds 42.7% of its shares. Sonnipe, part of Entrée Capital, and the company's first major investor, holds a 12.4% stake. Mann has a 15.3% stake, while Zinman holds 5.6% of the shares. Wix founder and CEO Avishai Abrahami owns 4% of the company's shares.