What’s Been Happening?
SendGrid, a Colorado tech company in the United States, was founded in 2009 by three developers: Isaac Saldana, Jose Lopez and Tim Jenkins. Only one of its three founders (Saldana) still has a big enough stake in SendGrid to be among the shareholders who own 5% or more of the company.
It is a cloud-based email delivery service that assists over 55,000 paying customers (e.g. Uber, Spotify & Airbnb) to send more than 30 billion emails every month.
SendGrid manages transactional email such as purchase receipts, password resets, account creation in addition to email marketing in the form of promotions and email newsletters.
In November 2016, they had a venture capital raising that amounted to $33 million, bringing its total venture funding to $80 million.
On the 16th of November, the company made its public debut on the New York Stock Exchange (NYSE: SEND). SendGrid said earlier this month that it planned to sell 7.7 million shares, priced between $13.50 and $15.50 per share. Prior to going public, it increased both those figures, ultimately offering 8.2 million shares at $16. The stock popped 14% to $18 on its first day of trading, giving the company a market capitalisation of $734 million.
Despite the success of its IPO, SendGrid is still very much a “show me” story as it isn’t profitable yet. Although its revenues have risen year on year with sales hitting $80.2 million in its first nine months of 2017, net losses also grew to $4.7 million in the same period.
At the current share price, the company’s risk profile is too high and banks too much on the staying power of email, like its competitors MailChimp and SparkPost. But for now, with 54% of the planet (3.7 billion people) still using email, it’s hard to imagine a world that is without email anytime soon.