Rubrik Plans To Pursue IPO In 2023: Report

The data security vendor is reportedly expecting to raise up to $700 million in the offering.

Data security vendor Rubrik is reportedly aiming to raise as much as $700 million in an initial public offering that’s expected to be completed in 2023.

The Bloomberg report follows Rubik’s disclosure in January that it had crossed $500 million in annual recurring revenue — as well as comments to CRN at the time by Rubrik CEO Bipul Sinha that “at some point we want to be a public company.” In June, Reuters reported that Rubrik had hired three banks to assist with the planned IPO.

[Related: John Thompson On Helping Rubrik Scale And Prepare For An IPO]

On Friday, Bloomberg reported that Rubrik’s investor roadshow could start as early as October, with the IPO likely to reach completion by the end of the year. Going public could bring in a sizable sum — between $500 million and $700 million — in funding for the company, according to the report.

Rubrik declined comment on the Bloomberg report when reached by CRN Friday.

The report added that Rubrik has hired seven more banks to join the three leading underwriters — Goldman Sachs, Barclays and Citigroup — that were previously disclosed in the Reuters report.

Existing investors in Rubrik include Microsoft and several prominent venture capital firms.

Recent moves by Rubrik included reaching an agreement in August to acquire an up-and-coming startup in cloud data security, Laminar, reportedly beating out other suitors for the startup including Datadog.

Rubrik’s more than $500 million in software subscription ARR, disclosed in January, was up from $400 million in ARR as of late August 2022. It has put the company, which helps enable businesses to recover from ransomware attacks, in the same ballpark as some of the cybersecurity industry’s existing publicly traded firms, such as SentinelOne.

During the interview with CRN, Sinha said that “we are watching the market and when the time is right, we’ll be a public company.”

“We definitely have the scale and momentum [to complete an IPO],” he said in January.

Rubrik also announced at the time that it had added the former CEO of Palo Alto Networks, Mark McLaughlin, to its board.

The company’s valuation in connection with its August 2021 funding round from Microsoft was not disclosed, but Bloomberg had reported the company valuation at $4 billion at the time. Other investors include Bain Capital Ventures, Lightspeed Venture Partners, Greylock Partners, Khosla Ventures and IVP.

Sinha, who co-founded Rubrik in 2014, contended in January that Rubrik stands alone in offering data security built on zero trust principles.

Rubrik’s advantage, Sinha told CRN, is that “from day one” the company was committed to an architecture for its data protection software built on zero trust, involving steeper requirements for user access to data and greater control for organizations.

As a result, “we are the only zero trust data security platform,” Sinha said. “And that’s what is driving our demand, because that’s what businesses need. They need to have a platform where you can only interact with the platform with full authentication.”

By contrast, he said, “the classic backup and recovery architecture is a ‘full trust’ architecture.”