Anomalo, a startup co-founded by former Instacart employees in 2018, has secured $33 million in Series B funding. This latest funding round brings the total raised by the company to $72 million, following an equal amount raised in their 2021 Series A. The company’s focus on using machine learning to address data quality challenges in large datasets has gained significant traction, especially as the importance of data quality continues to grow in the era of large language models.
Key Takeaway
Anomalo’s innovative approach to data quality monitoring, supported by machine learning, has led to significant growth and a $33 million Series B funding round. The company’s focus on balancing growth and efficiency, along with its commitment to diversity, positions it for further expansion and success in the data analytics space.
Validation of the Thesis
According to Anomalo’s co-founder and CEO, Elliot Shmukler, the company’s initial thesis about the critical role of data quality has been validated over the years. Shmukler emphasized the necessity of ensuring that data used for various purposes, including decision-making and powering generative AI applications, is accurate, of high quality, and ready for use. As the volume of data stored in cloud storage and data warehouses increases, the need for effective data monitoring becomes even more pronounced.
Efficient Data Monitoring
Anomalo has developed a targeted approach to data monitoring, allowing customers to focus on specific data sets, thereby reducing costs. By reserving full ML and AI solutions for the most critical data sets, the company aims to provide efficient monitoring while minimizing expenses for its customers.
Impressive Growth and Financial Performance
Shmukler highlighted the company’s remarkable growth, with revenue reportedly reaching close to $15 million, representing a 15x increase since the Series A round. Additionally, Anomalo’s annual recurring revenue experienced a staggering 177% growth in the recent fiscal third quarter, a rare achievement for early-stage enterprise startups.
Strategic Goals and Expansion
To maintain a balance between growth and efficiency, the company has established specific goals related to percentage growth in annual recurring revenue and burn multiple, an emerging efficiency metric. As Anomalo’s revenue continues to soar, the company plans to double its current workforce of 50 employees and remains committed to diversity and inclusion, with a focus on attracting and retaining women in leadership and engineering roles.
Series B Investment and Strategic Partnerships
The $33 million Series B investment was led by SignalFire, with participation from strategic investor Databricks Ventures, as well as previous investors Norwest Venture Partners, Two Sigma Ventures, and Foundation Capital. Notably, the involvement of Databricks Ventures, a leading data analytics startup with a significant valuation, underscores the industry’s recognition of Anomalo’s innovative approach to data quality monitoring.
