Dec 22, 2022

DigitalOcean, the cloud company has closed a $50 million Series C funding round led by Access Industries, with participation from Andreessen Horowitz (a16z). The funding follows the $320 million debt financing in February and brings the firm’s equity valuation to $1.15 billion. In the past, Andreessen Horowitz has backed companies such as Pinterest, Facebook, Slack, Groupon, lyft, and Skype, to name a few. The US-based firm, founded in 2012, has presence in 195 countries with three global offices, including Bengaluru, India. The firm claims to have a high-growth business with $300 million in annual recurring revenue, serving above 500,000 customers globally, with around two-thirds located outside the US. The company has created a strong niche in the $200 billion cloud market by catering to entrepreneurs, developers and small businesses who choose to utilise the company’s easy-to-use, affordable and scalable infrastructure over complex and cost-prohibitive options provided by others in the market. CEO at DigitalOcean, Yancey Spruill, said the firm was now freed up to focus on accelerating revenue growth, transitioning to free cash flow profitability in 2020 and position itself as a public company. “We are delighted to extend our partnership with Access and a16z and see this capital as adding strength to our balance sheet enabling us to better serve our customers’ demand for our platform, especially during COVID-19 where we are seeing an acceleration of businesses transitioning to the cloud,” he added. The company began its India operations when it commissioned its first data centre in Bengaluru in 2016 with a seed investment of $5 million, targeted at the thriving startup and developer community. As per media reports, some of its customers are Magic Crate, OYO, Edge Networks, Rapido, Vakilsearch, Zerodha, WhatFix and Market Pulse. In India, the company also works in partnership with Nasscom 10,000 Startups and venture capital firms like Matrix, Accel, SAIF to support startups associated with or funded by them. Share this article: