Algolia

About the Company

When you visit sites like Lacoste, Coursera, Twitch, or Under Armour and use search, you use Algolia. The company's product is something similar to a Google search for individual sites.

Algolia provides a search engine API that works across platforms and devices. Algolia's API aims to allow developers to build, optimize, and personalize search and discovery experiences for their users.

The company was founded in 2012 and has offices in Paris, San Francisco, Atlanta, New York City, London and Tokyo.

Market Opportunities

Companies are adopting enterprise search to improve their operational efficiency by controlling large amounts of data. Global Enterprise Search market size stood at $4B in 2020 and is projected to reach $6.8B in 2026 with expected CAGR of 13.6% in terms of revenue.

Algolia handles over 1.5 trillion search queries per year. The company serves more than 10,000 customers, including some big names, such as Slack, Stripe, Medium, Zendesk and Lacoste.

Financials and Valuation

In July 2021 Algolia raised $150M from Lone Pine Capital, Glynn Capital, Fidelity Management and others at a valuation of $2.25B. Compared to the Series C round from October 2019, the company’s valuation has more than quadrupled. It means that Algolia is now a unicorn with a valuation above $1B. Since its inception Algolia has raised $334M in funding over 9 rounds.

The CEO reported revenue in 2018 amounted to $40M with GAGR 100%. Now the company doesn’t share revenue numbers directly, but says that its annual recurring revenue has increased by 180% year over year.

Risks

Algolia faces strong competition from a number of firms, including its closest rival Elastic. This may negatively affect its long-term viability and valuation.

Sources

“Search API Startup Algolia Raises $150 Million at $2.25 Billion Valuation”, TechCrunch, Jul 2021

“Google Rival Algolia’s CEO Raised $110 Million, Then Hired His Replacement”, Forbes, May 2020