Recent reports from April 2025 indicate that German AI translation startup DeepL, founded in 2017 by Jarek Kutylowski (CEO), is considering an IPO for 2026. Currently valued at $2 billion and backed by leading venture capital firms, DeepL is positioning itself for a significant market entrance.
While 2026 remains the target date, sources suggest the IPO could happen as early as 2025. Industry analysts note that the company is “closely monitoring current IPO market dynamics to decide the optimal timing,” indicating a strategic approach to market conditions.
These IPO plans are still preliminary and subject to change. The company hasn’t confirmed any specific timeline, and DeepL has not responded to requests for comment. Like other pre-IPO companies, their plans remain flexible, depending on market conditions, performance metrics, and strategic objectives.
DeepL’s fundraising and financial performance
According to Dealroom, DeepL has raised $410 million in venture funding to date. Their most recent financing came in May 2024, a $300 million Series B round that valued the company at $2 billion post-money. Index Ventures led this round and was joined by ICONIQ Growth, Teachers’ Venture Growth, and returning investors IVP, Atomico, and WiL.
In January 2023, DeepL reached unicorn status after securing over $100 million at a $1 billion valuation. IVP led that round, supported by Bessemer Venture Partners, Atomico, and WiL, following earlier investments from Benchmark and btov.
The company’s early 2023 valuation of $1 billion reflected a 20x multiple of its annual run rate of approximately $50 million in late 2022. DeepL was showing 100% year-over-year growth and approaching profitability at that time. By the end of 2024, their annual revenue had surged to $185.2 million, driven by an expanding customer base and premium offerings.
Core offerings: AI translation services and “Clarify” feature
DeepL offers free and premium AI translation services, focusing on high-demand B2B products. Their platform now handles 32 languages, with recent additions including Arabic, Norwegian, and Korean.
In March 2025, DeepL launched “Clarify,” a pioneering feature in its translation services. This tool lets users choose from multiple contextual interpretations of ambiguous phrases, an innovation particularly valuable for enterprise clients working with legal or technical documents.
The company serves over 100,000 businesses, governments, and organisations across over sixty global markets, including prominent clients like Zendesk, Nikkei, Coursera, and Deutsche Bahn. Responding to growing demand in its third-largest market, DeepL established its first U.S. office in January 2024.
DeepL’s competitive edge comes from its neural network architecture, training data, and human editor input. As CEO Kutylowski explains, “Focus is always important. Translation isn’t Google’s core business—it’s just one of their 100 side projects… Our focus remains on one specific area.”
Can we expect more IPOs in Germany this year?
Germany’s tech sector attracted over €9.5 billion in 2024, with AI and deep tech leading the way. Major funding rounds, including Helsing (€450 million) and DeepL (€300 million), demonstrate strong investor confidence in German startups.
Several other notable companies are preparing for public listings. Solar unicorn 1Komma5° and process mining leader Celonis are among them, though with varying timelines. 1Komma5° has secured €150 million in pre-IPO funding to expand its renewable energy platform across Europe by mid-2025, while Celonis, valued above $13 billion, plans to go public within two years.
Despite regulatory challenges and competition from other European hubs like London and Paris, Germany’s industrial heritage and government support, including the €12 billion WIN program, provide strong foundations for startup growth and exits.
Germany’s IPO market shows promise for 2025, following 2024, which saw four IPOs raise $2.2 billion. Improving economic conditions will likely attract investors to profitable companies with proven business models. AI, fintech, and climate tech continue driving innovation and funding, with Munich emerging as a hub for deep tech, particularly in aerospace and robotics.
DeepL’s forthcoming IPO could catalyse more exits in Germany’s startup ecosystem throughout 2025. With robust investment trends and increasing global recognition of German deep tech companies, more startups may pursue public listings or strategic acquisitions this year.
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