Supabase, an open-source developer platform centered around Postgres, has raised $80 million in a Series C funding round led by Peak XV and Craft Ventures, bringing its total funding to $196 million. This latest round follows an $80 million Series B raised in 2022. Although CEO Paul Copplestone did not disclose the company’s new valuation in an interview with TechCrunch, he did confirm that it was an “up round” and noted that the company had only recently begun using reserves from its Series B funding.
Growth Driven by AI and pgvector Extension
The company’s growth is largely attributed to the AI boom, as developers turn to Supabase for its early support of the pgvector extension, a key tool in AI-driven databases. Copplestone highlighted that Supabase was one of the first platforms to offer pgvector, and the company worked closely with AWS to encourage its widespread adoption. Today, around 10% of active databases on Supabase support AI use cases.
Strong Adoption Among Startups and Enterprises
Supabase has also made significant inroads with both startups and larger enterprises. Approximately 40% of the most recent Y Combinator cohort are using Supabase, and major companies like Meta, Netflix, Microsoft, and GitHub Next have integrated the platform to support experimental applications.
Evolving from Firebase Alternative to Postgres Leader
While Supabase initially gained traction as an open-source alternative to Google’s Firebase, the platform has since shifted its focus to become a leading Postgres provider. This positioning has proven successful, as Postgres has gained popularity while interest in Firebase has waned. “We’ve won on two fronts,” Copplestone explained, citing the platform’s ease of use and Postgres’ growing popularity.
Modular Product Offering
Supabase’s product suite includes six core tools: Database, Storage, Authentication, Edge Functions, Vector, and Realtime. Each can be used independently, and the platform’s authentication service is particularly popular, often serving as a gateway for new users.
New Funding and Future Prospects
In addition to Peak XV and Craft Ventures, the funding round saw participation from Avra Capital, the new fund launched by former YC Growth Fund Director Anu Hariharan, as well as returning investors Coatue, Felicis, and Y Combinator. Hariharan expressed enthusiasm for Supabase’s growth, pointing to its 900,000 sign-ups over four years as a sign of strong organic adoption. She also highlighted Supabase’s recent partnership with Vercel, predicting the Postgres platform will become a top choice for developers seeking a scalable, user-friendly solution.
With this new influx of funding, Supabase is well-positioned to continue expanding its services, particularly as demand grows for AI-powered solutions and Postgres-based infrastructure.