InterActive Corp (IAC)’s video software platform Vimeo has raised $ 300 million in equity from funds and accounts advised by T Rowe Price and Oberndorf Enterprises ahead of a planned spin-off into a separately traded company in Q2 2021.

The funds were raised at a post-money valuation of about $ 6 billion, more than doubling from the $ 2.75 billion valuation in November last year when Vimeo raised $ 150 million from Thrive Capital and Singapore’s sovereign wealth fund GIC.

Vimeo said the funding is happening through two tranches – an initial $ 200 million round at a pre-money valuation of $ 5.2 billion and a $ 100 million round at a pre-money valuation of $ 5.7 billion. The fresh financing will be used to accelerate investments in growth, innovation and talent, the company said in a statement.

“As the world embraces video like never before, Vimeo is in an incredibly strong position to help more businesses take advantage of this powerful medium,” said Vimeo chief executive Anjali Sud “We have built an industry-leading solution that the market needs, and we intend to move swiftly to bring our professional-quality tools to millions more users.”

The 16-year-old video service started off as a video sharing platform, rivalling Google’s YouTube. However, it later pivoted to offering video software solutions to businesses, enabling them to create, manage and share high-quality videos. It offers these solutions through various pricing plans starting from $ 7 per month and going up to $ 75 per month with a 30-day free trial.

Vimeo also provides a free basic membership with limited storage and features for individuals and a custom enterprise solution for large businesses.

The company is benefiting from the increasing adoption for remote work during the pandemic. In December, Vimeo said revenue jumped 57% year-on-year, the highest growth rate clocked in 2020. It has over 200 million users across the world with 1.5 million paying subscribers. Among its corporate customers include Amazon, Starbucks, Deloitte, Zendesk, Rite Aid and Siemens.

“Vimeo is the quintessential IAC success story,” said IAC chief executive Joey Levin “With patience, discipline, and ambition, Vimeo has transformed from a tiny seed to a large global enterprise making its mark on the world, and Anjali Sud is an exceptional leader.”

Following the spin-off, Vimeo will be the eleventh firm to be hived out of IAC after Expedia, Match Group, and Lending Tree among others.

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