RudderStack, a startup that offers an open source alternative to customer data management platforms such as Segment, announced today that it has raised a $ 5 million launch round led by S28 Captial. Salil Deshpande from Uncorrelated Ventures and Mesosphere / D2iQ co-founder Florian Leibert (over 468 Capital) also participated in this round.
The company also announced today that it has acquired Blendo, an integration platform that enables companies to convert and move data from their data sources into databases.
Like its larger competitors, RudderStack helps companies consolidate all of their customer data, which is now typically generated and managed in multiple locations – and then draw value from this more holistic perspective. The company was founded by Soumyadeb Mitra, who holds a Ph.D. in database systems and previously worked on similar issues when he was at 8 × 8 after his previous startup, MairinaIQ, was taken over by this company.
Mitra argues that RudderStack differs from its competitors in its focus on developers, its privacy and security options, and its focus on being a data warehouse first without creating another data silo.
"In addition to the data they store, our competitors offer tools for analysis, target group segmentation, etc.," he said. “It works well if you are a small startup, but larger companies have a lot of other data sources – at 8 × 8, for example, we had our own internal accounting system – and you want to combine this internal data with the event stream data – which you can do via RudderStack or Collect competitors – to create and respond to a 360-degree view of the customer. This will be very difficult with our competitors' data model hosted by SaaS. You will not send all of your internal data to these cloud providers. "
Part of its appeal is of course the open-source character of RudderStack, whose GitHub repository now has over 1,700 stars for the main RudderStack server. Mitra credits are published on the HackerNews front page for the first sale. That day, it received over 500 GitHub stars, several thousand clones, and lots of signups for its hosted app. “One of these registrations turned out to be our first paid customer. They were already customers of a competitor, but it was not enlarged and they wanted to build something of their own. Then they found us and started working with us, ”he said.
Since it is open source, companies can run RudderStack at will. However, like most similar open source companies, RudderStack also offers several hosting options, including cloud hosting from $ 2,000 per month with unlimited sources and destinations.
Current users are IFTTT, Mattermost, MarineTraffic, Torpedo and Wynn Las Vegas.
When acquiring Blendo, it should be noted that the company only collected a small amount of money in its starting round. The two companies have not announced the price of the acquisition.
"With Blendo, I had the opportunity to be part of a great team that had the vision to turn every business into a data-driven organization," said Blendo founder Kostas Pardalis, who joined RudderStack as Head of Growth. “We combined the talented teams of Blendo and RudderStack with the technology that both companies developed at a time when the customer data market was ripe for the next wave of innovation. I look forward to driving RudderStack forward. "
Mitra tells me that RudderStack bought Blendo instead of creating its own version of this technology because “it's not a trivial technology to create – cloud sources are really complicated and have weird schemas and API challenges, and we would have plenty of time to do it find out used. There are large independent companies that make the ETL piece. "