AppDirect, a leader in cloud service commerce, announced today during the AppDirect Partner Summit that it has raised $140 million in funding led by an investment fund advised by J.P. Morgan Asset Management.
The financing round including participation from all existing institutional investors, including iNovia Capital, Foundry Group, Mithril Capital Management, StarVest Partners, and Stingray Digital.
Led by cofounders Daniel Saks, of St. Catherines, ON, and Nicolas Desmarais of Montreal, AppDirect has now raised $245 million since it was founded in 2009.
The new investment validates AppDirect’s position as the standard for selling and managing cloud services.
Over the past 12 months, the company has experienced explosive growth. It now powers the largest network of cloud service marketplaces, reaching approximately a quarter of all small businesses worldwide through partners such as Comcast, Deutsche Telekom, Telstra, ADP, and FICO. In addition, AppDirect has over one million paid business subscribers, a nearly 300 percent increase year over year.
The company has also rapidly scaled its global team. Over the past year, AppDirect has doubled its headcount to more than 350 team members located around the world and recently announced its fourth acquisition, AppCarousel, an app platform which will allow AppDirect to help businesses access applications across all devices.
With the new capital, AppDirect will continue to invest in capabilities that further the vision of making it easy for businesses to seamlessly manage multiple applications and services. AppDirect plans to innovate on its core platform—which consists of catalog management, identity management, subscription billing and data management—to help businesses increase productivity and drive IT efficiency.
“When we started the business in a San Francisco apartment more than five years ago, Nicolas Desmarais and I had the vision of helping businesses find, buy, and manage the technology they need to thrive,” said AppDirect President and Co-CEO Daniel Saks.
“This new round of funding validates our vision and traction in the market, and will allow us to put cloud services in the hands of millions more businesses through local, trusted providers. We look forward to helping even more companies of all sizes and stages of growth sell and manage their own SaaS applications.”