Cloud service commerce company AppDirect has raised $50 million in Series D funding, it was announced on Wednesday.
The round was led by Mithril Capital Management, along with existing investors Foundry Group, iNovia Capital and StarVest Partners, and new investors Henry Kravis and Paul Fribourg. AppDirect had previously raised $60 million, including $35 million in Series C funding in April of last year. This latest round brings AppDirect's total capital raised to $110 million.
Founded in 2009, the San Francisco-based AppDirect makes it easier for enterprise companies to find, buy and manage cloud service tools they need. It does this by offering tools, such as single sign-on, which give employers a single set of credentials that allow end users to access and manage the same application across Web and mobile versions.
Its platform helps clients to create one ecosystem for developers, providers and consumers. The company works with channel partners, such as large telecommunications companies, hosting providers and retailers, including Comcast, Deutsche Telecom, Rackspace and Staples. It then white labels app stores for them to offer apps to their business customers.
For example, a business will go to Staples and, instead of buying Microsoft or Google apps on the shelf, will be able to select the apps they need, then offer them to employees to manage them all with a single password. Ultimately, this saves businesses both time and money, in that they will often get a discount, as it is cheaper to buy apps as part of a bundle.
The company has been growing at an incredibly fast rate, more than doubling its year-over-year revenue for the past four consecutive years. Its 2014 revenue was $18 million, up from $9 million in 2013.
AppDirect says it will use the new capital expand its employee based, specifically its sales, marketing and client services teams. AppDirect currently has 215 employlees, and plans to increase that number to over 300 this year.
The company will also use the funding to open new offices around the globe, specifically in India, London, Tokyo, Mexico and Sunnyvale, California. AppDirect currently has offices in San Francisco, Ottawa, Boulder, Munich, Montreal, Stockholm, Sydney and Singapore. It also has plans to expand its Munich and Montreal offices, and open a new office in Silicon Valley.
It also plans to use the new funding increase its presence in two new markets as well: Asia and Latin America.
AppDirect has at least 20 million customers worldwide, and has a presence in 150 countries.
This new funding comes only a few months after AppDirect purchased Leftronic, a provider of real-time business data and analytics dashboards.
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Steven Loeb
The company initially raised $3 million in seed funding when it launched in October
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Steven Loeb
This is the company's first fundraising since 2019 and brings its total capital to $103M
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Steven Loeb
Startup/Business
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Where business can find, buy and manage web-based applications.
Our Business Application Network allows businesses to easily find the perfect software solution for their needs through our application marketplaces. Businesses can now benefit from one bill for all their applications and one portal to manage and use them. This allows greater integration, ease of use and security for application management.
The Story
We founded AppDirect in the summer of 2009 with a simple mission: improve the web-based enterprise experience. Our mission and enthusiasm attracted a leading team with over 55 years of collective on-demand e-commerce and software experience from HP, Oracle, Google, VMware, and Salesforce. In our first year, AppDirect grew into one of the largest independent software distribution channels through channel partners that share our vision and passion for web-based products.
Web-based software is better.
Web-based technology overcomes the barriers to entry that software companies face in the traditional packaged software market. This makes the software industry more competitive and businesses can now benefit from a greater range of products and services. It liberalizes software by allowing small businesses to access and afford enterprise grade solutions.
We make web-based software even better.
AppDirect promotes the ease of use, security and reach of web-based applications. Despite the growth in web-based applications over the past few years it remains difficult to find solutions and integrate them for unified management and use. We address this problem with our Application Marketplace, which makes it much easier for businesses to find and compare solutions. We also allow businesses to manage and use web-based software applications in a unified environment through our Business Application Manager.
