Octopus Deploy, a software company from Brisbane that focuses on continuous integration and delivery (CI/CD) tools, has raised A$45.6 million (around US$30 million) in new funding.
This investment, led by Insight Partners, increases the company’s valuation to A$883 million (about US$580 million), which is a rise of US$80 million over the last four years.
The new funding comes just a few months after the Brisbane-based company spent $43 million to buy its US competitor, Codefresh.
With this latest investment from Insight Partners, Octopus Deploy’s valuation rose by US$80 million to A$883 million, making it one of the largest privately-owned companies in the DevOps sector.
The latest funding will help Octopus Deploy grow and improve its products for platform engineering teams.
The company recently launched the Octopus MCP Server, a tool that connects with source control, continuous integration systems, and cloud MCP tools, making DevOps workflows faster and more efficient.
After being profitable for ten years and funding itself without outside help since it was founded in 2012 by the husband-and-wife team Sonia and Paul Stovell, the company has focused on rapid growth since raising US$172.5 million (A$222 million) four years ago.
The Stovells own just under half of the company, while Insight Partners holds a little over a third.
The company’s revenue has tripled since FY2021, but it has reported losses each year since FY22 because spending on sales, marketing, and staff more than doubled.
Octopus Deploy’s latest quarterly results for Q2 2024 show its annual recurring revenue (ARR) reached $79.8 million, up 17% compared to last year. The quarterly free cash flow was $0.2 million (1%), down from $0.6 million (4%) in the previous quarter.
The company now has more than 4,000 customers, including 137 customers generating over $100,000 in ARR, which is a 10% increase from last year. Its North American enterprise customers contributed $25 million in ARR, growing by 20%.
The company expects its ARR to reach between $81 million and $83.4 million by the end of Q3, with a loss of $3.5 million to $4.5 million, mainly due to seasonal fluctuations.
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