Preteen unicorn Dropbox requirement some currency real quick, so the company only procured a $600 million personal credit line according to a new Bloomberg report. This “couldve been” the companys last-place funding round before its initial public offering.
According to Bloomberg, Dropbox is thinking about going public before the end of the year. According to what weve heard, the timeline isnt set in stone yet.
So what could Dropbox do with $600 million? First of all, its a good cushion of fund. If Dropbox needs to acquire a scary competitor or faces some unexpected costs, there will be enough fund on the companys bank account.
It also dedicates greater flexibility for the initial public offering. Dropbox could take advantage of this credit facility and push back its IPO a bit, or it could leave this path untouched and go public soonish.
Either way, Dropbox is now free-cash flow positive with a revenue lead rate projection of$ 1 billion for this year. Not bad, Dropbox , not bad.
Dropbox has been starting after big companies with lucrative bargains while cutting expenditure by constructing its own infrastructure. The corporation previously relied a lot on Amazon Web Services. Dropbox has built its own data centres since then.
Snap has basically taken an opposite stance by committing$ 2 billion over five years for Google Cloud infrastructure. It was listed as a risk factor in Snaps IPO filing. Future Dropbox investors will appreciate Dropboxs independence on this front.
The company could use part of this credit facility for infrastructure investments. Having its own infrastructure is great, but its also capital intensive.
JPMorgan, Bank of America, Deutsche Bank, Goldman Sachs, Macquarie and Royal Bank of Canada all participated in todays credit facility. One of those banks could end up underwriting the Dropbox IPO, so Dropbox probably negotiated favorable terms.