Supabase Secures $100M Funding at $5B Valuation to Expand Open-Source Database Platform

Supabase announced on Friday that it secured $100 million in Series E financing, pushing its company valuation to $5 billion. The round was led by Accel and Peak XV Partners, with additional support from Figma Ventures and several other investors.

This sharp increase from its $2 billion valuation during itsxSeries D just months ago highlights the rapid growth of the startup and strong demand for open-source developer platforms.

Why investors are backing Supabase

Supabase develops an open-source alternative to Google’s Firebase, built on PostgreSQL. The platform offers authentication, real-time APIs, and cloud infrastructure designed to help developers launch applications more quickly and at scale.

Its growth reflects several industry trends:

• Postgres adoption: PostgreSQL continues to gain ground as a leading database system worldwide.

• Developer-driven tools: More companies are choosing platforms that allow engineers to adopt technology directly without heavy IT oversight.

• Cloud flexibility: Businesses are looking for open-source solutions to avoid dependence on large cloud vendors.

How Supabase plans to use the new funding

The company said the Series E capital will support:

• Expanding global cloud infrastructure for faster, more reliable performance.

• Developing enterprise features aimed at larger organizations.

• Building new tools and integrations to strengthen its ecosystem for application developers.

Supabase’s founders say their goal is to provide developers with “the essential building blocks” needed to create modern applications.

Where Supabase Stands Now

At a $5 billion valuation, Supabase is no longer just a startup experimenting in the database space. It’s being mentioned alongside companies like MongoDB and Elastic, which both started as developer-driven projects before becoming widely adopted in large enterprises.

The company’s momentum reflects two realities in the market:

• PostgreSQL has become a global standard for new applications.

• Businesses are looking for open-source alternatives to avoid being locked into a single cloud vendor.

This shift has moved Supabase from serving mostly independent developers and small startups to attracting interest from larger companies that want more control over their infrastructure. The latest funding round gives it the resources to build out features aimed at those bigger clients.

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