Cybersecurity startup Rubrik, which garnered a $4 billion valuation with Microsoft’s backing in 2021, is reportedly preparing for an initial public offering (IPO) in New York as early as April. This development unfolds alongside an ongoing U.S. Department of Justice (DOJ) investigation into a former Rubrik employee for potential fraud.
The focus is on whether the ex-employee diverted funds, totaling $46 million from U.S. government contracts with Rubrik, into a separate entity. Rubrik is actively cooperating with the DOJ investigation and aims to conclude it by the end of March, allowing for the anticipated IPO.
The cybersecurity company, founded in 2014 by Bipul Sinha, specializes in cloud-based ransomware protection and data-backup software, catering to over 5,000 business clients, including major names like Nvidia and Home Depot. Rubrik boasts annual recurring revenue exceeding $600 million, experiencing robust overall revenue growth in the high single-digit percentage range.
Rubrik’s IPO is a significant move in the U.S. market, which has seen restrained activity over the past two years. The company’s valuation reached $4 billion following an investment from Microsoft in 2021.
Goldman Sachs, Barclays, and Citigroup are set to lead Rubrik’s IPO as underwriters, as reported last year. Despite the ongoing investigation, Rubrik’s IPO could mark a notable event in the technology sector.
