SonarSource coding platform valued at $4.7 billion after latest funding

(Reuters) – SonarSource, a coding platform for developers, said on Tuesday it was valued at $4.7 billion after raising $412 million in capital in a new funding round led by Advent International and General Catalyst.

Geneva-based SonarSource intends to use the funds to double its sales force this year and expand the company’s marketing team across its international offices, including those in the United States, France, Germany and Switzerland.

Olivier Gaudin, co-founder and managing director, said the company is also preparing for public tenders.

The company, which counts tech giants IBM, Microsoft and Google parent Alphabet among its customers, offers a platform that supports 29 programming languages, allowing developers to “write clean code”. Its product offerings include both open source and commercial solutions.

Tech companies offering innovative solutions for businesses to streamline their business operations have seen their valuations jump, with several using pandemic-fueled growth to float their shares in public markets or raise funds in new rounds.

Enterprise software companies such as coding platform GitLab Inc, Hashicorp Inc and Freshworks Inc all made strong market debuts last year, reaching valuations of more than $10 billion each.

Even as high-growth tech valuations have come under pressure this year, several companies continue to attract interest from prominent venture capital and private equity giants.

Commenting on the importance of clean coding, Gaudin told Reuters: “Organizations are investing in this practice because they see the high return on investment, both on developer productivity and software risk management.”

SonarSource is also looking to expand into the Asia-Pacific market and has announced the opening of a regional headquarters in Singapore.

Other investors in the new fundraising include private equity firms Permira and existing investor Insight Partners.

Reporting by Manya Saini in Bangalore; Editing by Maju Samuel

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