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IWG expands with 40 new centers by 2025, accelerates partnership model

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Marc Descrozaille, CEO - Middle East, Africa and APAC at IWG

IWG, a leading provider of flexible office spaces, plans to open 40 new centers by the end of 2025 through its growing partnership model, building on the 10 centers it launched between January and April 2025, according to regional CEO Marc Descrozaille.

“We have been in India since 2004 and and it took us all these years to get to 105 centers, with Regus initially, and later with Spaces and HQ. Conditions have changed after covid, both on the demand and the supply side. Clients want to be able to work from different office spaces. And therefore we expect growth going forward,” he said.

The company recently rolled out a partnership model, marking a significant shift in its operations.

“We are operating the space, bringing in the clients, and managing all distribution while landlords are investing in the space,” said the company, adding that it is transitioning from a traditional tenant approach to becoming strategic partners.

While the company is actively expanding its partnership model, it still values its legacy lease and sub-lease approach. IWG plans to continue operating its existing centers under the traditional model unless landlords specifically request a transition to the new partnership structure.

As of now, the convention model contributes about 75-80% of our overall revenue. At some point of time the ratio will be 50:50,” said Descrozaille.

He however admits that the margins typically for this new model will be smaller. “But on the other hand, IWG will not make the upfront investment.”

“Equally important is ensuring we have the right talent in place to support this growth. That means investing in our people—developing internal capabilities, building succession pipelines, and aligning our teams with long-term goals,” he said.

Regarding the opportunity in India, he noted that the country currently ranks among IWG’s top 15 global markets. With strong respect for and recognition of the market’s potential, the company aims to position India within its top three or four markets over the next five years.

“One element that is very unique to India is the size of the market. In other countries when we think of expanding, we think of moving from tier-I to tier-II cities, but in India we can even go to tier-III and tier-IV cities. So it’s very much a volume game, which is quite unique in terms of the size in India compared to anywhere else,” said Descrozaille.

IWG is strategically expanding its footprint with plans to open 40 new centers by the end of 2025, driven by a growing shift toward its partnership model. While the company continues to value its traditional lease structure, it is adapting to changing market dynamics and landlord preferences. With India emerging as a key growth market, IWG is setting ambitious goals to elevate its position among the company’s top global markets in the next five years.


ByteDance eyes on Meta’s Ad sales as TikTok dominates social media

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BRL Editor
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ByteDance is aiming for around 20% revenue growth in 2025, even amid concerns about a potential global economic slowdown—a rate that could bring its global business nearly on par with Meta Platforms.

According to sources familiar with the company’s financial outlook, TikTok’s parent company projects its revenue will rise from approximately US$155 billion in 2024 to about US$186 billion in 2025. This continues a trend of consistent 20%+ annual growth and brings ByteDance within striking distance of Meta’s estimated US$187 billion in revenue for the same year.

The company now reports having over four billion monthly active users across its suite of apps—comparable to Meta’s user base—according to the same sources, who spoke on condition of anonymity due to the confidential nature of the information.

TikTok’s rapid rise has drawn intense scrutiny, especially after the Biden administration initiated efforts to ban the Chinese-owned platform in the U.S. over national security concerns. Former President Trump is now allowing ByteDance time to negotiate a potential sale of TikTok—a process that could take months and has already attracted interest from major players like Amazon and Oracle.

Despite the looming threat of a U.S. ban, ByteDance continues to grow its global business, with TikTok expanding rapidly across international markets. Although the company set a slightly lower growth target for 2025 compared to last year’s 29%, executives note that they may adjust the target as they gain better clarity on business performance.

SoftBank Group’s Vision Fund raised ByteDance’s valuation to over US$400 billion last year, citing the company’s expanding role in generative artificial intelligence. According to Bloomberg News, other major investors like Fidelity Investments and T. Rowe Price Group have also increased their valuations, pegging ByteDance at more than US$410 billion and US$450 billion, respectively.

However, the company’s overall growth has slowed significantly since 2023. Douyin, ByteDance’s flagship video platform in China, is facing declining consumer activity and reduced advertising spend amid economic headwinds in the country. As a result, TikTok—its international counterpart—has increasingly become the primary driver of revenue growth.

Kuku expands globally with audio and video OTT platforms

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BRL Editor
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L-R: Vikas Goyal, Vinod Kumar Meena, and Lal Chand Bisu, co-founders, Kuku FM

Kuku, an emerging storytelling and entertainment platform from India, plans to broaden its international presence this year by launching its audio and video OTT platforms in major markets such as the United States and Southeast Asia, including Indonesia, the Philippines, and South Korea.

Vinod Kumar Meena, COO and Co-Founder of Kuku, said, “India is such a hotbed of stories around culture, tradition, science, spirituality, fiction and more. So why has India not emerged as a soft power in storytelling? If you look at South Korea then KDramas and Kpop have become such an important part of their economy.

With a catalog featuring more than 100,000 hours of audio stories and hundreds of microdramas across eight languages, Kuku has built a sizable content library comparable to leading streaming OTT platforms. The company introduced microdramas to a broader Indian audience with the launch of its video OTT arm, Kuku TV, in September 2024. Since then, it has become a significant player in the microdrama space. With over 5 million active paying users across both audio and video offerings, Kuku has set its sights on increasing its user base in India, aiming to eventually exceed Netflix’s subscriber count in the country.

Given we are the largest entertainment industry in the world, stories and storytelling should be our soft power and our biggest cultural export. There is immense potential in this to not only become a major contributor to our creative economy but also help create new jobs, opportunities and talent in the industry. We have hundreds of thousands of titles in our library which we want to take to the world this year.”

Kuku offers content across a diverse range of genres, including entertainment, education, spirituality, sci-fi, and fiction, catering to a broad spectrum of audiences. As it expands internationally, the company is placing a strong emphasis on understanding local cultures and preferences. In the U.S., Kuku is targeting the Indian diaspora, particularly speakers of Hindi, Tamil, and Telugu.

In Southeast Asia, the company aims to tap into audiences already acquainted with Bollywood and Indian television serials. With mobile devices serving as the primary content access point in many of these regions, Kuku has identified the Philippines and Indonesia as key initial markets for growth.

“For us, it’s more than just scaling; it’s about bringing a piece of home to Indians living abroad. We want them to hear familiar voices and stories, no matter how far they are from their roots,” shared Vinod Kumar Meena.

In South Korea, Kuku aims to connect with a tech-savvy audience that enjoys immersive storytelling, similar to the popularity of K-dramas on OTT platforms like Netflix, TVING, and Wavve. With growing curiosity about Indian narratives, Kuku is exploring innovative ways to engage this audience through its own OTT offerings, seeking to expand its community of viewers and listeners in the region.

With its ambitious global expansion, diverse content library, and focus on culturally tailored storytelling, Kuku is positioning itself as a significant player in the international OTT platforms landscape. By tapping into regional preferences and leveraging the universal appeal of Indian stories, the platform aims not only to entertain but also to build cultural bridges and drive growth in the global creative economy.

Redpoint raises $650M for early-stage fund after three years

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BRL Editor
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Alex Bard, Managing Directors, Redpoint Ventures

Redpoint Ventures secures $650 million early-stage fund—its 10th—according to a recent regulatory filing. Redpoint has matched the size of its previous early-stage fund, raising the same amount nearly three years later. As many venture firms scale back their fundraising efforts, Redpoint’s consistency suggests that its limited partners continue to show strong support and satisfaction.

Four managing partners—Alex Bard, Satish Dharmaraj, Annie Kadavy, and Erica Brescia, the former COO of GitHub who joined Redpoint in 2021—oversee the firm’s early-stage investments.

The team recently made notable investments in Poolside, an AI coding startup co-founded by former Redpoint partner and ex-GitHub CTO Jason Warner; Cockroach Labs, which develops a distributed SQL database; and Levelpath, a platform that focuses on procurement management.

In addition to its early-stage strategy, Redpoint also operates a growth investment arm. That effort is led by Logan Bartlett, Jacob Effron, Elliot Geidt, and Scott Raney. Last year, the firm raised its fifth growth-stage fund at $740 million, slightly above the $725 million fund closed three years earlier.

Next Insurance exited Redpoint’s portfolio in March when it was acquired for $2.6 billion. Wonder bought Tastemade, a food and travel media company, for $90 million. IBM acquired HashiCorp for $6.4 billion, marking another major exit for Redpoint.

Redpoint Ventures has demonstrated its credibility and strong performance by raising another $650 million early-stage fund—matching its previous fund despite a more challenging fundraising environment. Moreover, the firm continues to build investor confidence through its strong leadership, a portfolio of high-potential companies, and several successful recent exits. As a result, Redpoint further solidifies its position as a leading player in both early- and growth-stage venture investing.

Vibe-coding pioneer Windsurf shifts to in-house AI model strategy

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BRL Editor
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Windsurf, a startup known for creating AI model for software developers, has launched its first proprietary family of software engineering models, called SWE-1. The suite—which includes SWE-1, SWE-1-lite, and SWE-1-mini—aims to support the entire software engineering workflow, not just code generation.

Windsurf may surprise many with the release of its in-house models, especially amid reports that OpenAI has finalized a $3 billion deal to acquire the company. Nonetheless, the launch shows that Windsurf aims to move beyond application development and build its own foundational AI models.

Windsurf claims that SWE-1, its most advanced AI model, performs on par with models like Claude 3.5 Sonnet, GPT-4.1, and Gemini 2.5 Pro on internal coding benchmarks. However, it doesn’t quite reach the level of top-tier models like Claude 3.7 Sonnet in software engineering capabilities.

The company will make SWE-1-lite and SWE-1-mini accessible to all users, both free and paid. In contrast, it will reserve SWE-1 for paying subscribers. Although Windsurf did not share pricing details at launch, it claims its models are more cost-efficient than Claude 3.5 Sonnet.

Windsurf has gained recognition for enabling engineers to engage in “vibe coding”—a conversational coding style powered by AI chatbots. Other major players in this space include Cursor, the largest in the category, and Lovable. Traditionally, these companies have used third-party AI model from providers like OpenAI, Anthropic, and Google to build their platforms.

In a launch video, Nicholas Moy, Windsurf’s Head of Research, highlighted the rationale behind the new models: “Today’s frontier models are optimized for coding, and they’ve made massive strides over the last couple of years,” Moy explained. “But they’re not enough for us … Coding is not software engineering.”

A blog post from the company elaborates that while existing AI model can write code effectively, they often fall short when it comes to managing tasks across multiple environments—such as terminals, IDEs, and browsers. Windsurf says SWE-1 was trained using a novel data approach and a “training recipe that encapsulates incomplete states, long-running tasks, and multiple surfaces.”

The startup refers to SWE-1 as its “initial proof of concept,” indicating that additional AI models may be in development for future release.

Windsurf’s launch of its own AI models marks a significant step as the company takes greater control over the technology powering its tools. By developing and deploying SWE-1 and its variants, Windsurf aims to deliver a more integrated and efficient software engineering experience for developers, setting the stage for continued innovation in the vibe-coding space.

Zaggle partners with Mesh Payments to enter global spend management market

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BRL Editor
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Avinash Godkhindi, MD & CEO , Zaggle

Financial technology company Zaggle announced on Thursday that it has joined forces with travel and expense management provider Mesh Payments to explore opportunities in the global spend management market.

According to a company statement, this collaboration will enable Indian multinational companies to efficiently manage international expenses across regions such as the US, Europe, and Latin America by leveraging Mesh’s capability to issue corporate cards globally. Moreover, it will streamline expense management processes and enhance financial control for these companies.

Additionally, Mesh’s international clients with Global Capability Centers (GCCs) in India can also benefit from Zaggle’s robust spend management solutions, which include prepaid cards, forex cards, and corporate credit cards. Furthermore, this collaboration enhances the overall financial management capabilities for these global businesses operating in India.

Zaggle Founder and Executive Chairman Raj P. Narayanam calls the partnership a strategic step to expand the platform’s influence globally.

Referring to a Deloitte report, Zaggle highlighted that India’s top 100 companies collectively spend over $2.2 billion on business travel.

Mr. Avinash Godkhindi, MD & CEO, Zaggle, added, “India’s digital transformation is creating unprecedented demand for intelligent spend solutions, and we are uniquely positioned to meet that need. This collaboration has empowered us to expand our reach and provide Mesh’s global customers a seamless footprint in India by leveraging our Integrated Spend Solutions, deep understanding of Indian businesses, and navigation of India’s unique regulatory landscape. Together, we aim to redefine how businesses control and optimize their spending across borders.”

Zaggle stands among India’s leading issuers of prepaid cards, working closely with banking partners to power its diverse card-based offerings.

Oded Zehavi, CEO and co-founder of Mesh Payments, added, “This partnership with Zaggle marks a key milestone in our international expansion. India is a dynamic and rapidly growing business market, and this collaboration allows us to support our global clients as they enter India with confidence. Together, we’re helping companies scale faster—empowered by localized expertise in India and world-class spend management across the globe. At the same time, Zaggle’s customers gain access to our cutting-edge platform to manage global operations with agility and control.”

Zaggle’s partnership with Mesh Payments marks a significant and strategic step toward global expansion. By joining forces, they aim to offer intelligent spend solutions not only for Indian MNCs but also for international businesses operating in India, thereby strengthening their presence in the global market.

NapTapGo raises ₹2-Cr to expand Pod Hotels into religious cities like Katra

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BRL Editor
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Naptapgo, a pod hotel startup aiming to transform affordable hospitality, has secured ₹2 crore in a pre-seed funding round led by Gurugram-based angel investment firm Inflection Point Ventures. This follows a $500,000 investment the startup received in March from T9L Qube, one of India’s leading venture studios.

The newly raised funds will support Naptapgo’s growth in critical areas such as franchise expansion, marketing efforts, technological upgrades, and the development of innovative solutions to improve customer experience.

This strategic funding will also fast-track the startup’s expansion into both urban centers and popular religious destinations.

Founded by Nitin Malhotra (founder & CEO) and Himanshu Shukla (co-founder & VP Ops), Naptapgo is a pod hotel startup that provides clean, hygienic, and budget-friendly accommodations tailored for modern travelers. Currently serving the NCR’s business district, the startup plans to expand into religious destinations such as Katra and Amritsar in FY26, with a target of reaching 20 properties by FY27.

Naptapgo differentiates itself in the competitive hospitality space through its innovative offerings, including flexible check-in options, hourly stay models, and eco-conscious operations focused on sustainability.

Currently operating in the NCR region, Naptapgo plans to expand its footprint by launching new properties in Gurgaon, Bengaluru, Mumbai, Katra, and Amritsar, aiming to scale up to 20 properties by FY27.

A major strength of the startup lies in its affordable luxury model, which blends strategic location choices, space-efficient design, and flexible stay options supported by robust technology integrations.

“At Naptapgo, our goal is to be a significant player in the $1300 billion global hotel market, starting with India, and to redefine the perception of the Indian affordable hotel segment. Customer experience remains our key differentiator as we strive to create value for both our franchises and shareholders,” said Nitin Malhotra & Himanshu Shukla, co-founders of NapTapGo.

Vinay Bansal, Founder & CEO, IPV, said, “The hospitality industry is at its peak with globalization and digital connectivity, yet customer satisfaction has not kept pace. Over time, hotel prices have surged while service standards have remained stagnant.”

“NapTapGo is changing this by offering an innovative pod-hotel experience at an economical price without compromising on quality. Its accessibility and affordability for luxury spaces connect with millions of travelers seeking short-stay accommodations. At IPV, we believe NapTapGo is poised to tap into a massive market of travelers looking for smart, cost-effective lodging solutions,” Bansal added.

With its innovative approach to affordable luxury, tech-driven operations, and focus on both business and religious tourism hubs, NapTapGo is positioning itself as a disruptor in the budget hospitality space.

The latest funding will fuel its expansion plans and further its mission to redefine the Indian pod hotel experience—delivering convenience, flexibility, and value to modern travelers and franchise partners alike.

FlexiBees unveils FlexiBees Marketplace for fast, AI-vetted remote hiring

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BRL Editor
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L-R: Rashmi Rammohan, Shreya Prakash, Deepa N Swamy, co-founders, Flexibees

FlexiBees, a leading Indian provider of part-time, project-based, and remote women professionals, unveils FlexiBees Marketplace, a platform that enables global employers to easily hire top-tier, pre-vetted remote talent.

With this new marketplace, employers can create a remote job listing in just two minutes and onboard AI-vetted candidates within two days, thanks to a flexible, pay-per-use model.

The platform’s process is both innovative and user-friendly. Employers simply post a job, schedule interviews, and hire the most suitable candidates—all within a streamlined system.

This ease of use has made FlexiBees a preferred hiring partner for over 800 businesses.

FlexiBees combines AI-driven screening with human-led evaluations to vet candidates, assessing their skills and flexibility to deliver high-quality matches that meet each business’s specific needs. The FlexiBees Marketplace also offers competitive pricing, allowing companies to pay only for the time they use—by the hour or by the month—without adding any hidden costs.

Speaking on the development, Shreya Prakash, CEO and co-founder of FlexiBees, said, “Vetting talent on their capabilities has become a considerable factor for employers these days. But it can be a tedious process, and it takes a lot of time, which is a real business loss. With FlexiBees Marketplace, we aim to help businesses hire high-quality, pre-vetted professionals quickly to be more responsive to growth opportunities. Posting a job on the FlexiBees Marketplace is entirely free, and by allowing businesses to pay for the hours or months they require the services for, it integrates the aspect of cost efficiency, allowing global businesses to get the best candidates out there without spending prolonged time or resources to hire.”

FlexiBees sets its Marketplace apart with vetting technology that helps businesses hire highly experienced, best-matched talent ready to contribute from day one.

Employers cut up to 90% of their hiring time and skip the hassle of sifting through countless resumes. Instead, FlexiBees delivers 3–5 sharply vetted candidates per job, each matched precisely to the required skills and availability.

Another key advantage lies in cost-efficiency—FlexiBees enables businesses to hire talent at 40% to 60% lower than traditional hiring costs through its flexible pay-per-use pricing model. This blend of top-quality talent, time savings, and reduced effort drives 70% of FlexiBees’ business from repeat clients.

FlexiBees is also on a mission to redefine how work gets done by promoting flexibility through part-time, flexi-time, and remote roles, along with other non-traditional work arrangements. This model helps businesses operate more agilely, stay competitive, and focus more on their customers. FlexiBees empowers underutilized talent pools—especially women outside the traditional workforce—by providing them with opportunities to achieve financial independence and build self-worth.

Where Young Travelers Crave Connection and Culture: Shashank Negi’s Hospitality Revolution

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Amala Sree Murali
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Shashank Negi, Co-Founder & CEO of The Social Stays

Every journey begins with a spark — a moment of inspiration that changes everything. For Shashank Negi, Co-Founder and CEO of The Social Stays, that spark ignited from a simple but powerful realization: young travelers don’t just want a place to sleep; they crave connection, culture, and community. Fueled by this insight, Shashank set out to transform the way India’s young travelers explore the world, creating vibrant spaces that feel like home — no matter where the road leads.

From navigating the challenges of a bootstrapped startup to pioneering a new era of youth hospitality, Shashank’s story is one of passion, perseverance, and purpose. Under his visionary leadership, The Social Stays has emerged as a game-changer, blending innovative design, technology, and social experiences to craft stays that resonate deeply with the young travelers.

In this exclusive interview, Shashank opens up about the company’s unique mission, its impact on India’s hospitality scene, and the future of social travel. Join us as we explore how The Social Stays is reshaping travel — one connection at a time.

1. How is The Social Stays tailoring its offerings for Gen Z and millennial travelers seeking hyper-local, culturally immersive experiences?

At The Social Stays, we understand that young travelers today seek more than just a place to crash — they’re chasing experiences, memories, and meaningful connections. That’s why every one of our properties is designed to reflect the soul of the city. From handpicked local artwork and authentic regional flavors to guided walking tours led by locals, we make sure guests don’t just visit a destination — they feel it.

More than a stay, we offer a sense of belonging. Whether they’re a solo traveler looking to make new friends or a group seeking unforgettable stories, The Social Stays is their home away from home. Here, travel isn’t just about places — it’s about people, culture, and creating moments that stay with them long after they have checked out.

2. How do you balance affordability, experience, and profitability in a lifestyle-driven hostel brand?

At The Social Stays, we follow a hybrid model that goes beyond traditional hostels. While hostel stays remain our core, we complement them with vibrant café-coworking spaces and community-driven experiences. This mix offers young travelers an affordable yet elevated stay — think design-forward interiors, smart technology, and meaningful social connections.

We’re budget-friendly, but never basic. Every detail is crafted to deliver high value without inflating costs. As a proudly bootstrapped company, we run lean and smart — keeping a close eye on efficiency and profitability. These aren’t just business metrics for us; they’re proof that passion, purpose, and performance can thrive together.

3. How is The Social Stays using technology to enhance guest experience while preserving a human-centric atmosphere?

At The Social Stays, our tech stack is built for ease and efficiency. From seamless online bookings and digital check-ins to a WhatsApp-based concierge and an internal dashboard for team coordination — we use smart tools to simplify operations and enhance the guest experience.

But we also know that in hospitality, technology can’t replace human warmth. While tech helps us run smoother, it’s genuine human interaction that truly leaves a mark. Our guests feel most valued when their concerns are heard and handled by a real person — not a bot. It’s this balance of innovation and empathy that sets us apart.

4. How do you use data to personalize experiences while maintaining guest privacy?

At The Social Stays, we personalize every experience using guest preferences and behavioral insights — from suggesting local events to tailoring how we communicate. But we draw a clear line when it comes to privacy. We never sell or share data.

Our approach to personalization is thoughtful and respectful — designed to feel intuitive, not intrusive. It’s all about making guests feel seen, not tracked.

5. What sustainability practices have The Social Stays adopted?

At The Social Stays, sustainability is woven into our everyday choices. We actively reduce single-use plastics, promote water conservation, and compost food waste wherever possible. Our spaces are designed to stay clean, green, and free of litter — inside and out.

But we don’t stop there. We involve our guests too — through conscious travel tips, volunteering opportunities, and partnerships with eco-friendly local vendors. For us, going green isn’t a trend — it’s a shared responsibility.

6. How do you build community within your properties?

Community is at the heart of everything we do — it’s what truly sets The Social Stays apart. That’s why we underwent a full branding overhaul to align with what today’s young travelers really seek: social, meaningful connections on the road.

We knew early on that today’s young travelers are drawn to experiences and the people they meet along the way. Our properties are designed to spark interaction, with shared spaces that bring guests together. Guests often become friends over a game of pool or while swapping stories during breakfast in our cafés.

To keep the vibe alive, we also host daily events — from music nights and games to bonfires — creating moments that turn a stay into a memory.

7. What leadership principles guide you as a young founder?

Clarity, adaptability, and empathy drive my leadership style — because I’m building for Gen Z, and leading with the same values. That means staying transparent with my team, staying flexible as the market shifts, and always listening — to our guests, our staff, and our partners.

In a world full of uncertainty, conviction is my constant. It keeps us grounded, focused, and ready to grow.

8. How did the pandemic reshape your long-term vision?

The pandemic reshaped the hospitality industry in ways we couldn’t have imagined. After a steep decline, the rise of revenge travel brought a shift in how people explore and where they stay. Hostels, once favored mainly by international travelers, began welcoming a surge of domestic guests.

Travelers started seeking unique stays — villas, hostels, camps — over standard hotels. The focus moved from just accommodation to immersive experiences. That shift became our guiding light, and we’ve built The Social Stays to reflect exactly that — travel that’s memorable, meaningful, and experience-driven.

9. What sets The Social Stays apart in day-to-day guest experience?

It’s the vibe that sets The Social Stays apart. Not a hotel, nor a typical hostel, but a living, breathing space where every guest feels seen, welcomed, and inspired.

That energy comes through in the morning playlist, the thoughtfully designed coworking zones, the local art on the walls, and the friendships that form in the dorms. It’s more than just a stay — it’s a shared community where stories begin and friendships last.

10. What untapped opportunities excite you in youth travel?

India’s youth travel market remains largely underserved. From digital nomads to weekend intercity travelers, a new wave is emerging — and The Social Stays is poised to lead it.

The current model holds significant potential, with ample room for growth. Looking ahead, expansion into broader hospitality segments like hotels and resorts is planned — all with a strong focus on social experiences that connect travelers.

Databricks acquires Neon for $1 Bn to boost AI agent capabilities

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BRL Editor
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Ali Ghodsi, Co-founder and CEO at Databricks

Databricks, a leading data and AI company, acquires Neon, a cloud-native serverless Postgres platform, in a deal valued at approximately USD 1 billion. This acquisition will aim at bolstering Databricks’ capabilities in supporting AI-native applications and agent-driven workloads.

Nikita Shamgunov, Heikki Linnakangas, and Stas Kelvich founded Neon in 2021 to offer a managed, open-source Postgres solution optimized for cloud and AI applications. Moreover, the platform lets developers clone databases, test changes in isolated environments, and restore data from any point in time. Additionally, Neon’s architecture automatically scales compute, memory, and storage, providing a flexible, pay-as-you-go model that suits the fast-paced demands of AI-generated, short-lived databases.

Data from both companies shows that AI agents, not humans, provision over 80% of the databases created on Neon. This shift highlights a significant transformation in how developers build and deploy applications, as AI agents increasingly require fast, flexible infrastructure to operate effectively.

Ali Ghodsi, co-founder and CEO at Databricks, said, “The era of AI-native, agent-driven applications is reshaping what a database must do. Neon proves it: four out of every five databases on their platform are spun up by code, not humans. By bringing Neon into Databricks, we’re giving developers a serverless Postgres that can keep up with agentic speed, pay-as-you-go economics, and the openness of the Postgres community.”

Neon’s architecture is set to enhance Databricks’ existing Data Intelligence Platform by enabling developers to launch isolated Postgres instances in under 500 milliseconds. It also offers branching and forking capabilities at both the schema and data levels, facilitating experimentation without affecting live production environments.

Traditional architectures that couple compute and storage have limited flexibility, especially for the dynamic needs of AI agents. By decoupling these components, Databricks and Neon plan to reduce latency, improve cost efficiency, and simplify infrastructure management—key advantages for organizations building AI systems at scale.

“Four years ago, we set out to build the best Postgres for the cloud that was serverless, highly scalable, and open to everyone. With this acquisition, we plan to accelerate that mission with the support and resources of an AI giant,” said Nikita Shamgunov, CEO of Neon. “Databricks was founded by open-source pioneers committed to making it easier for developers to work with data and AI at any scale. Together, we are starting a new chapter on an even more ambitious journey.”

Once they complete the acquisition—pending regulatory approvals and standard closing conditions—Databricks will integrate Neon’s team, who will continue developing their database technology and engaging with their developer community. The companies plan to share more details at the upcoming Data + AI Summit in San Francisco, scheduled for June 9 to 12.

Neon has raised USD 129.5 million from investors including Microsoft’s M12, Menlo Ventures, General Catalyst, and Notable Capital. Databricks has secured over USD 19 billion in funding to date, with a USD 15.3 billion round earlier this year boosting its valuation to USD 62 billion. By acquiring Neon—following its recent purchases of Tabular and MosaicML—Databricks continues to accelerate its expansion into the AI and data infrastructure space.

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