Supabase Secures $80M in Series C to Expand Postgres-Based Developer Platform Amid AI Boom

Supabase, the open-source developer platform known for its managed Postgres database service, has raised $80 million in a Series C funding round, led by Peak XV and Craft Ventures. This latest investment brings Supabase’s total funding to $196 million, following a similar $80 million Series B round in 2022. Although Supabase's co-founder and CEO, Paul Copplestone, didn’t reveal the company’s updated valuation, he confirmed that this round represents an increase and noted that they have only recently started tapping into reserves from their Series B round.

The recent surge in demand for Supabase is largely driven by the AI boom. Postgres, the database technology behind the platform, is gaining traction in AI use cases, particularly with the integration of the pgvector extension. Supabase was an early adopter of pgvector, and its collaboration with AWS helped spread its usage industry-wide. Today, approximately 10% of active databases on the platform are powering AI applications.

Supabase’s popularity continues to grow, especially among startups, with around 40% of companies from the latest Y Combinator cohort using the platform. However, the company is also expanding its reach into the enterprise space, helping power experimental apps for major players like GitHub, Meta, Netflix, and Microsoft.

Despite its growth, Supabase only declared its service "generally available" earlier this year, after ensuring it could meet the robust demands of enterprise customers. Initially perceived as an open-source alternative to Google’s Firebase, Supabase’s focus on Postgres has helped it carve out a unique position in the market. Postgres has seen rising popularity in recent years, while Firebase’s momentum has slowed.

"We’ve found success for two reasons: we’re as easy to use as Firebase, and we’re built on Postgres, which is incredibly popular. That combination makes us the easiest way to use Postgres," said Copplestone.

The company’s authentication product has also seen significant success. Many businesses start by adopting this single service before exploring the rest of Supabase's offerings, which include a database, storage, edge functions, vector, and real time services.

In addition to lead investors Peak XV and Craft Ventures, Avra Capital, the new fund from former YC Growth Fund Director Anu Hariharan, also participated in this round, along with existing investors like Coatue, Felicis, and Y Combinator.

“Supabase is transforming database management with its open-source Postgres platform, and its rapid organic adoption, with over 900,000 sign-ups in just four years, speaks volumes. We're eager to see the results of their partnership with Vercel, as Supabase's developer-friendly platform becomes the go-to choice for companies seeking robust solutions,” Hariharan said.