By Echo Wang, Milana Vinn and Krystal Hu
NEW YORK (Reuters) – Rubrik Inc, a U.S. cybersecurity software startup backed by Microsoft Corp and valued at $4 billion in a fundraising round two years ago, has hired banks for an initial public offering, four people familiar with the matter said.
The Palo Alto, California-based company is working with Goldman Sachs, Barclays Plc and Citigroup Inc for its planned stock market flotation, said the sources, who requested anonymity because the discussions are confidential.
Rubrik may raise more than $750 million in its IPO, three of the sources added, though that may change based on market conditions as the preparations are still at an early stage.
Rubrik currently generates annual recurring revenue of about $600 million, one of the sources said.
Three of the sources said Rubrik could choose to go public in 2024, if the IPO market becomes more welcoming. It has lately been hostile to flotations due to market volatility.
Rubrik, Goldman Sachs, Barclays and Citi declined to comment.
Founded in 2014 by venture capitalist Bipul Sinha, Rubrik makes cloud-based ransomware protection and data-backup software. The company serves more than 5,000 enterprise customers, including Nvidia Corp and Home Depot Inc. It said its annual recurring revenue tied to software subscriptions surpassed $500 million in January.
Rubrik has so far raised more than $1 billion in equity and debt from investors including Bain Capital Ventures and Lightspeed Venture Partners, according to PitchBook.
U.S. IPOs, excluding listings for special-purpose acquisition companies, have raised a total of just $7.7 billion year-to-date, according to Dealogic – a tally that was boosted by the $3.8 billion offering of Kenvue Inc, the consumer health division of Johnson & Johnson.
In other signs that the IPO market is thawing, SoftBank Group Corp-backed chip maker Arm and marketing automation firm Klaviyo Inc are moving ahead with their IPO plans, having filed confidentially for their offerings with U.S. regulators, Reuters reported earlier.
SoftBank-backed Cohesity Inc, which competes with Rubrik, is also preparing to go public, having filed confidentially for an IPO in late 2021, Reuters reported.
(Reporting by Echo Wang, Milana Vinn and Krystal Hu in New York; Editing by Matthew Lewis)