AppDirect makes it easier for enterprises to buy cloud services from the likes of Box, Google, Symantec and others (and serves as a kind of referral service for these businesses). The company today announced that it has raised a $140 million funding round led by J.P. Morgan. All of the company’s existing institutional investors, including Foundry Group, iNovia Capital, Mithril Capital Management and Stingray Digital, also participated in this round.
AppDirect has now raised a total of $245.75 million, including a $50 million Series D round the company raised earlier this year.
As AppDirect president and co-CEO Daniel Saks told me, the company met with J.P. Morgan shortly after it closed its last funding found and the firm actually contributed additional capital to its Series D that it hadn’t previously disclosed. With this round, J.P. Morgan decided to “double down,” as Saks put it. “They saw how much faster we were moving,” he said.
In addition, Saks also believes that while AppDirect is mostly seen as a storefront right now, it has developed a wide range of expertise around billing and app management which it still has to fully deploy.
AppDirect didn’t talk to anybody on the market for this round and instead kept it completely internal.
Through its partners like Comcast, Deutsche Telekom, Telstra, ADP and FICO, AppDirect claims it currently reaches about a quarter of small businesses worldwide. The company now has about a million paid business subscribers on its platform — a roughly 300 percent increase year over year.
As Saks told me, the company isn’t currently profitable. “But we are very prudent with our capital,” he said, noting that AppDirect is doubling its revenue growth annually.
The company, which also recently acquired app platform AppCarousel, now has a headcount of about 350. Half of its employees are outside of the U.S. and work from the company’s offices in cities like Stockholm, Tokyo and Munich. Saks tells me half of AppDirect’s revenue is international. The company plans to use parts of the new funds to expand its international footprint.