Cloud network startup Velocloud has raised US$35 million in a series D round led by private equity firm Hermes Growth Partners with participation from Telstra Ventures and the Malaysian government’s investment fund Khazanah Group.
“We have been following the exploding SD-WAN space very closely and recognize its potential to transform enterprise WAN,” said Bobby Yerramilli-Rao, the founder and partner at Hermes Growth Partners. “We decided to invest in VeloCloud because of the company’s highly differentiated solution, superb track record with customers, and exceptional management team.”
Apart from Telstra and Khazanah, other investments came from existing investors Cisco Investments, March Capital Partners, New Enterprise Associates (NEA), and other undisclosed strategic investors.
“The funding will be used to expand businesses, capacity and operations as the company accelerates new SD-WAN product development, supports larger customer rollouts, and dramatically increases sales and marketing in theaters worldwide. Today’s funding brings the company’s total funding to US$84 million,” said VeloCloud in an announcement on Thursday.
The latest round will bring the total amount raised by the Mountain View, California-based startup up to US$84 million.
Since the closure of its series C one year ago, the startup has set several new records for sales and has seen its number of SD-WAN sites grow to more than 50,000 and total customer wins exceed 600, including the two largest SD-WAN wins in the world.
Besides, VeloCloud has continued to extend its market leadership as it has secured deals from AT&T, Sprint, Mitel, TelePacific, and Windstream for the “VeloCloud Cloud-Delivered SD-WAN for Service Providers” solution for both Network Integrated and Over The Top implementations.
In addition, VeloCloud continued work with its existing ecosystem of service provider partners, including Vonage, MetTel, EarthLink, and NetOne to deliver the benefits of VeloCloud Powered SD-WAN for their customers.
Its service enables firms to securely support application growth, network agility, and simplified branch and end-point implementations while delivering optimized access to cloud services, private data centers and enterprise applications.
“Telstra Ventures is very excited to join this round of VeloCloud funding as Telstra and VeloCloud are completely aligned with the vision of delivering network agility and architectural flexibility to enterprise customers, and we see huge opportunities for both, especially in the Asia-Pacific region,” said Mark Sherman, Managing Director of Telstra Ventures.
By Vivian Foo, VCNewsNetwork