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Slack Valuation More Than Doubles to $2.8 Billion

This story originally appeared on CNBC

Six months ago, a year-old messaging app called Slack lit up the tech blogs when it raised money at a $1.2 billion valuation. Well, try $2.8 billion


That's how high investors including DST Global and Index Ventures are valuing the start-up, based on a $160 million financing round announced Thursday. All for a service that's effectively trying to kill internal e-mail use by simplifying among teams.

Created by co-founder Stewart Butterfield, the -based company has over 200,000 paid users, and 750,000 people access the service daily. Customers include Adobe, the New York Times, HBO and Expedia.

"Stewart and the team at Slack have taken a page out of the consumer playbook and revolutionized communications by taking a generationally-different approach to messaging," said Mike Volpi, partner at Index Ventures and now a Slack board member, in the statement.

Slack didn't specify how it's going to put all this fresh cash to work, just months after raising $120 million. The biggest challenge is creating staying power in a market where many companies have emerged then fizzled. And there's competition from Atlassian's HipChat service as well as Asana and Basecamp.

"We're still at the beginning of a major transition in how people communicate and work together," said Butterfield.

The investing round was joined by all existing backers, including , Kleiner Perkins Caufield & Byers and Google Ventures.

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