Anomalo, a startup that offers a machine learning approach to data quality, has announced a $33 million Series B funding round. This round brings their total raised to $72 million and follows their successful $33 million Series A earlier this year. The co-founders of Anomalo, who previously worked at Instacart, saw the potential for using machine learning to address data quality issues in large datasets. As data quality continues to be a key concern, especially with the rise of large language models, Anomalo’s solution has become even more relevant.
CEO Elliot Shmukler explained the importance of monitoring data for accuracy and quality, especially when it is used for various purposes such as decision-making and powering generative AI applications. With companies storing massive amounts of data in cloud storage and data warehouses, the need for effective data monitoring has only grown. Anomalo has developed a unique approach that allows them to focus on monitoring specific data sets, thus lowering customer bills while still providing a powerful solution.
The results speak for themselves, as Anomalo has experienced significant growth since their Series A round. Shmukler revealed that revenue has grown 15 times since then, while annual recurring revenue for the recent fiscal third quarter increased by an impressive 177%. These numbers are rarely seen in early-stage enterprise startups.
While investors welcome this rapid growth, Shmukler acknowledges the need for efficiency. He emphasized the importance of finding a balance between growth and financial responsibility. To achieve this, Anomalo has set goals based on both percentage growth in annual recurring revenue and burn multiple, a metric that measures efficiency. This approach allows them to maintain high growth while keeping a close eye on expenses.
As Anomalo continues to expand, they are focused on building a diverse team. Shmukler believes that diversity is a core goal and has already made progress in this area. Among the new hires, four out of seven executives are women, and a third of the engineering group consists of women. Anomalo aims to attract more women candidates by demonstrating the presence of women in leadership roles.
The Series B funding round was led by SignalFire, with participation from strategic investor Databricks Ventures. Previous investors Norwest Venture Partners, Two Sigma Ventures, and Foundation Capital also joined the round. The fact that Anomalo attracted the attention of Databricks, a leading data analytics startup, is particularly noteworthy as Databricks had a valuation of $43 billion as of September 2021.
With this new funding, Anomalo plans to double its employee count, which currently stands at 50. The company remains committed to maintaining both growth and efficiency as they continue to innovate in the field of data quality with their machine learning approach.
