Slack just confirmed that it’s raised $200 million at a $3.8 billion valuation, confirming what Business Insider had previously reported.
The new round was led by Thrive Capital with participation by GGV, Comcast Ventures, and Slack’s existing investors, including Accel and Social Capital.
The company has raised $540 million in total so far. Its last round of funding came exactly a year ago, when it raised $160 million at a $2.8 billion valuation.
Slack, launched a little over two years ago, is a popular communication and chat program for businesses. It allows people to send messages and create private group channels at work.
It makes money by charging monthly or annually subscriptions. It now has 2.7 million daily active users, of which 800,000 of them are paid users. In February, it said it’s on pace to generate $64 million in revenue by the end of the year.
Slack hopes to one day replace email as the main form of electronic communication for businesses. Slack CEO Stewart Butterfield previously told Business Insiderthat his goal is to end “interoffice email” because it’s a less efficient system than messaging. According to a recent survey by Slack, its users have reduced office email by nearly 50% after using Slack.
“As has always been the case, we are taking this opportunity to further secure our leadership position as we continue to execute on our ambitious growth plans. This capital adds to our existing reserves and increases our ability to focus on an uncompromising long-term, strategic view,” Slack CEO Stewart Butterfield said in a statement.