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Figma moves closer to a blockbuster IPO that could raise $1.5B
Design software company Figma has taken a significant step towards going public by publicly sharing its financials, moving it one step closer to an initial public offering (IPO) that could raise as much as $1.5 billion. The impressive financials disclosed in the S-1 filing paint a picture of a highly profitable and rapidly growing company.
According to the regulatory document, Figma brought in $749 million in revenue last year, marking a 48% increase from the previous year. This growth shows no signs of slowing down, with the company reporting a 46% year-over-year revenue growth in the first quarter of 2025. The financials also reveal that Figma’s gross margin has ballooned to an impressive 91%, demonstrating its ability to maintain profitability as it scales.
Figma’s financial performance is all the more remarkable considering its history of losses. In 2023, the company reported a staggering loss of $732 million, largely due to one-time expenses related to employee stock compensation. However, Figma has since turned a corner and achieved profits in both the fourth quarter of 2024 and the first quarter of 2025.
The company’s financials are so strong that IPO experts at Renaissance Capital estimate it could raise as much as $1.5 billion in its offering. While this is subject to change, it would match or even surpass CoreWeave’s massive $1.5 billion IPO earlier this year.
Not surprisingly, Figma’s impressive financials have raised the stakes for any potential competitors looking to disrupt its design software market share. With such a strong track record of growth and profitability, Figma will be an attractive investment opportunity for many institutional investors seeking high returns.
However, there is one notable cloud on the horizon: the rise of AI-powered coding and designing apps. Startups like Lovable are targeting Figma’s market and gaining traction quickly. While this competition presents a risk, Figma has already taken steps to integrate AI technology into its own products, which may help it maintain its competitive edge.
Figma has made significant investments in developing these AI capabilities, including generative AI, and has expressed concerns about the uncertainty surrounding the rapid evolution of this technology in its regulatory filing.
Source: techcrunch.com
