German AI translation platform DeepL is mulling over a stock market listing in the U.S. as early as 2026.
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Early Talks
According to an article in Bloomberg, the Cologne-based firm, which is a rival of the Alphabet (GOOGL)-owned Google Translate service, has reportedly started preliminary talks with potential advisors about the listing.
However, it is understood that final decisions on the timing of the move and the venue have not been made.
If it did list, DeepL could target a valuation of up to $5 billion, though the final figure will depend on market conditions and investor interest.
The company, which claims that it is on a mission to eliminate language barriers for people and businesses worldwide, last raised $300 million at a $2 billion valuation in 2024.
It would become the latest tech company to IPO in recent months, adding to a listings revival. In the first half of the year, IPOs raised more than $31 billion. That figure already beats the full-year total for 2024. Nasdaq accounted for $21.3 billion, while the NYSE added $8.7 billion. Technology and financial technology listings drove most of the volume, such as fintech Klarna Group (KLAR) and Figma (FIG).
Most of those IPOs seem to have started their public lives in fine fettle – see above – which is likely to stoke more listings interest.
Global Understanding
DeepL, founded in 2017, develops AI-driven translation tools and has plans in the works to launch DeepL Agent, an AI assistant for business automation.
The company has offices in Japan and the U.S., employs over 1,000 people, and is backed by Benchmark, IVP, and Index Ventures.
DeepL Chief Revenue Officer David Parry-Jones told Reuters in May that the company was seeking to make inroads into the U.S. market because of sizable growth opportunities.
He added at the time that the company has more than 200,000 business customers and millions of paying and non-paying daily users.
It offers translation in over 30 languages. Last year it launched traditional Chinese as a language option as it looks to push into Asia.
The Global AI in Language Translation Market is expected to be worth around $13.5 Billion by 2033, from $1.8 Billion in 2023.
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