Popular cloud-based file-sharing service, Dropbox, is opening a $600 million credit facility from six banks led by JPMorgan Chase & Co, a Bloomberg report said.
The credit line is expected to come on Monday, the report quoted people familiar with the plans as saying. Dropbox is expected to go for an IPO later this year.
Dropbox though said that it’s not in a hurry to go public and that the business is nearing profitability. The company announced early this year that its business has surpassed $1 billion in revenue run rate. It quoted Robert Mahowald, Group Vice President, Applications and Cloud, IDC, that Dropbox, in fact was “the fastest software-as-a-service (SaaS) company to reach this milestone to date.”
Dropbox could tap debt if it wants to expand more aggressively or make acquisitions, said one of the people familiar with the plans to Bloombereg. It never touched a smaller credit facility, which was expiring, the person said.
The company had in July, last year, said that it is “now free cash flow positive and an industry leader with almost 200,000 Dropbox Business customers.”
Dennis Woodside, COO, Dropbox said:
“Being free cash flow positive means that we’re now funded by our customers, for our customers—at scale. This allows us to serve cutting edge media companies like News Corp, large enterprises like HPE, as well as innovative businesses of all sizes. Our investment in our own custom infrastructure, Magic Pocket, is already having a major impact, and laying the foundation for rapid product innovation in the workplace.”
It was founded in June 2007 by Drew Houston and Arash Ferdowsi. It launched in September 2008 as a simple way for people to have their files wherever they are, and share them easily.
In 2011, the cloud company launched a product for teams. This became the foundation for Dropbox Business, which launched in 2013, which gives companies visibility and control over critical business data, streamlining collaboration for teams large and small. In 2015, it announced Dropbox Enterprise, introducing new deployment tools, advanced controls, and services and support designed specifically for large organizations. In 2016, the company announced Dropbox Education to facilitate collaboration between faculty and staff at colleges and universities.
The company is headquartered in San Francisco, with offices in Austin, New York, Seattle, Washington DC, Amsterdam (Netherlands), Dublin (Ireland), Hamburg (Germany), Herzliya (Israel), London (United Kingdom), Paris (France), Sydney (Australia), and Tokyo (Japan).