Media content management startup Cloudinary valued at $2 billion in $100 million+ secondary sale
Cloudinary Ltd., a startup that helps brands manage their media content and ensure it loads quickly for users, has secured a secondary investment of over $100 million from Blackstone Growth.
investment, announcement today values Cloudinary at $2 billion. The deal comes months after the startup hit another major business milestone: its annualized recurring revenue topped $100 million in December.
Cloudinary, based in Santa Clara, Calif., provides a set of cloud services businesses can use to manage their images and videos. The startup’s services also help with related tasks, such as ensuring that media content loads quickly for website and app users.
Cloudinary’s product portfolio includes a set of application programming interfaces for editing multimedia content. Businesses can use the APIs to perform tasks such as cropping an image or video, resizing it, adding captions, and changing the file format. A built-in AI tool automates repetitive tasks like tagging files to free up time for users.
Cloudinary also helps businesses optimize their media assets to speed up content load times. The startup provides a service that can gauge a user’s connection speed and automatically determine how much files need to be compressed to ensure fast loading. Cloudinary also optimizes files in other ways, such as changing their format when it can save bandwidth.
The startup uses multiple content delivery networks to load media assets for users. For each website or app visit, Cloudinary chooses the content delivery network that can provide the fastest load times. For brands, the startup provides a dashboard that allows them to track their content optimization efforts and find opportunities for improvement.
Businesses such as online retailers may have over hundreds of thousands of media assets on their websites and apps. Managing such a large number of files is especially difficult because there are often multiple versions of each asset. A retailer, for example, can prepare three different versions of their logo: one for their mobile app, another for their website, and a third to display on point-of-sale systems.
Cloudinary provides a centralized library that allows businesses to store their media assets in one place for easy access. As part of its feature set, the library offers tools that promise to help users manage the different versions of a file used across their enterprise.
In addition to leading the more than $100 billion secondary investment that Cloudinary announced today, Blackstone Growth has pledged to “support the future expansion of Cloudinary’s business,” including acquisitions. Cloudinary made its first acquisition only a few weeks ago: The startup in January bought video software maker Indivio Inc. for an undisclosed sum.
Cloudinar Recount Forbes that it does not plan to make any further acquisitions in the near future. However, Cloudinary is reportedly exploring opportunities in the virtual reality, augmented reality, and blockchain segments.
Cloudinary claims to manage more than 60 billion files for nearly 10,000 companies. The startup’s clients include major brands such as Atlassian Corp. Plc, NBC, Sony Group Corp. and Amazon.com Inc.’s Whole Foods supermarket chain Cloudinary has managed to establish such a large presence in the market despite never raising any outside investment except for secondary sales and the start-up of its operations since its launch.