Preteen unicorn Dropbox needs some cash real quick, so the company just secured a $600 million credit line according to a new Bloomberg report. This could be the company’s last “funding” round before its initial public offering.
According to Bloomberg, Dropbox is thinking about going public before the end of the year. According to what we’ve heard, the timeline isn’t set in stone yet.
So what could Dropbox do with $600 million? First of all, it’s a good cushion of money. If Dropbox needs to acquire a scary competitor or faces some unexpected costs, there will be enough money on the company’s bank account.
It also gives more flexibility for the initial public offering. Dropbox could take advantage of this credit facility and push back its IPO a bit, or it could leave this line untouched and go public soonish.
Either way, Dropbox is now free-cash flow positive with a revenue run rate projection of $1 billion for this year. Not bad, Dropbox, not bad.
Dropbox has been going after big companies with lucrative deals while cutting cost by building its own infrastructure. The company previously relied a lot on Amazon Web Services. Dropbox has built its own data centers since then.
Snap has basically taken an opposite stance by committing $2 billion over five years for Google Cloud infrastructure. It was listed as a risk factor in Snap’s IPO filing. Future Dropbox investors will appreciate Dropbox’s independence on this front.
Disrupt 2026: The tech ecosystem, all in one room
Your next round. Your next hire. Your next breakout opportunity. Find it at TechCrunch Disrupt 2026, where 10,000+ founders, investors, and tech leaders gather for three days of 250+ tactical sessions, powerful introductions, and market-defining innovation. Register now to save up to $400.
Save up to $300 or 30% to TechCrunch Founder Summit
1,000+ founders and investors come together at TechCrunch Founder Summit 2026 for a full day focused on growth, execution, and real-world scaling. Learn from founders and investors who have shaped the industry. Connect with peers navigating similar growth stages. Walk away with tactics you can apply immediately
Offer ends March 13.
The company could use part of this credit facility for infrastructure investments. Having its own infrastructure is great, but it’s also capital intensive.
JPMorgan, Bank of America, Deutsche Bank, Goldman Sachs, Macquarie and Royal Bank of Canada all participated in today’s credit facility. One of those banks could end up underwriting the Dropbox IPO, so Dropbox probably negotiated favorable terms.
