Slack has raised $427 million in a new fundraising round valuing the firm at more than $7.1 billion, the company announced on Tuesday. The round, led by Dragoneer Investment Group and General Atlantic, better equips the fast-rising business messaging app to take on deep-pocketed competitors. That includes Microsoft and its Teams product, which comes bundled with Office 365 subscriptions and has gained a foothold among larger businesses.
Slack executives have previously said the firm wouldn’t go public until at least next year, but they have been laying some of the groundwork, adding a CFO and a second independent director earlier this year. The company also established dual-class shares late last year, according to public filings, which would allow it to sell low-vote shares in an IPO and give earlier shareholders more control.