Cloud-based phone systems provider RingCentral has raised $10 million in new funding from new investor Scale Venture Partners and Cisco. The company previously raised $45 million in funding from Cisco, Sequoia Capital, Khosla Ventures, DAG Ventures, and Silicon Valley Bank.
RingCentral markets an advanced, cloud-based replacement for legacy phone systems in the form of a hosted business phone platform with voice and fax functionality. The platform includes auto-receptionist, multiple voicemail boxes, call routing, business answering rules, extension dialing, call transfers, and integration with Smartphones. RingCentral’s phone systems basically make their clients appear bigger than they are.
And earlier this year, RingCentral began powering the cloud business phone system solutions for a number of wireless carriers including AT&T and Roger’s Canada, who offer RingCentral’s cloud phone system solution to their customers. The company currently has over 200,000 customers.
RingCentral CEO Vlad Shmunis tells us that the new funding will be used for expansion and towards the delivery of new products and services. And he explains that RingCentral is playing in a $50 billion market, where there is plenty of room for growth. “It’s a matter of educating businesses that they can save thousands up front by going with the cloud,” he explains. “We see the cloud has a winning business function for any market.”
Interestingly, RingCentral has also been flagged as an IPO candidate as well. Shmunis confirms that an IPO is a viable future possibility for the company.