Nexmo closes $18 mln in Series C financing

Nexmo has raised $18 million in Series C funding. Sorenson Capital led the round with participation from existing investors Intel Capital and NHN Investment. As a result of the transaction, Fraser Bullock, managing director at Sorenson Capital, has joined Nexmo’s board of directors. Based in San Francisco, Nexmo is a provider of messaging and voice capabilities to application developers.

PRESS RELEASE

SAN FRANCISCO, CA–(Marketwired – Jan 21, 2014) – Nexmo, the company that enables enterprises and developers to communicate simply and seamlessly with any phone globally by eliminating the need to interface with or adapt to intermediate telecom hardware and providers, announced today that it has closed $18 million in its Series C round of funding led by Sorenson Capital, with participation from its existing investors, Intel Capital and NHN Investment. Fraser Bullock, managing director of Sorenson Capital, has joined the Nexmo board of directors. Profitable with increasing revenue growth, Nexmo will use the funds to expand its suite of communication APIs and scale its distribution channels.
Nexmo connects web applications directly to billions of phones, enabling instant and two-way communication among businesses and their customers on a global basis. Mobile messaging apps such as Line and Viber use Nexmo for their user acquisition and security; Pingdom uses Nexmo for mission critical notifications for its IT monitoring service; and Airbnb utilizes Nexmo to connect hosts with guests safely and instantly.
“2013 was a record-breaking year for Nexmo, and securing our latest funding round is clear validation of the scalability of our cloud model,” said Nexmo CEO Tony Jamous. “Nexmo is disrupting the telecom industry in a positive way by removing barriers between carriers around the world and enterprises. By doing so, Nexmo has enabled those enterprises to adapt their businesses on a virtual ‘real time’ basis and reach their customers quickly through an ultra-efficient ecosystem between wireless carriers and phones.”
Nexmo recently doubled its infrastructure by opening a data center in Singapore. This successfully achieved geo-redundancy and further reduced transaction latency. In addition to using its latest funding round to invest in its advanced messaging and voice product lineup, Nexmo will also increase its worldwide sales, support and marketing efforts, as well as add staff to its San Francisco, CA headquarters and its global offices in Europe and Asia.
“Nexmo is an innovative mobile company that offers best-of-breed cloud communication APIs for an exploding roster of customers,” said Bullock. “Nexmo will continue to raise the bar in the mobile and telecom space by providing creative and unique technologies that enable its customers to maximize their own offerings. They are the ultimate ‘friendly disruptor.’ We see great potential in Nexmo as it continues to expand its product portfolio.”
Nexmo is the mobile messaging partner of choice for Over-The-Top (OTT) app developers globally. In 2013, Nexmo became the number one enabler of OTT apps. Today, approximately 80 percent of the OTT market now uses Nexmo. Nexmo also achieved a staggering run rate of over 2.5 billion API calls that were placed using the service in 2013.
About Nexmo
Since 2011, Nexmo (www.nexmo.com) has delivered high quality messaging and voice capabilities to application developers and enterprises worldwide. By forging solid relationships with global carriers and leveraging cloud technologies that reach deep into the telecom infrastructure, Nexmo’s SMS and Voice APIs offer solid deliverability and transparency to its users. Messaging heavy hitters such as Line, Viber and Airbnb send millions of messages per month using Nexmo’s API, and the company is rapidly expanding its capabilities and customer base in the Voice space as well. Nexmo is headquartered in San Francisco and has received investments from NHN Investment in South Korea and Intel Capital in Silicon Valley. Its investors from prior rounds include Initial Capital, Intel Capital and NHN Investment.
About Sorenson Capital
Sorenson Capital (www.sorensoncapital.com) is a private equity fund that makes small to middle-market buyout and growth equity investments. Sorenson Capital has $650 million in capital under management and typically makes investments of $10 to $25 million in companies with unique strategic positions. Sorenson Capital is managed and controlled by West Rim Capital and is based in Salt Lake City, Utah.

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