SendGrid, a cloud-based communications company, announced the closing of a $33 million Series D funding round on Wednesday to accelerate the company’s product roadmap and to expand its geographic footprint.
Yancey Spruill, CFO/COO at SendGrid, says the influx of resources will drive three key areas of growth for the company. He says the company plans to expand its product development and geographic
footprint, as well as support future M&A (mergers and acquisitions) activity.
SendGrid's funding is led by previous investor Bain Capital Ventures, and includes participation from Foundry Group, Bessemer Ventures and SoftTech Ventures.
SendGrid also expressed its plan for an IPO some time in the New Year. The company plans to enhance its email marketing product, Marketing Campaigns, and its Expert Service offerings, a consulting service to improve email deliverability, authentication and impact.
SendGrid's API is popular in the developer community and allows marketers to act quickly, says Spruill.
Spruill says SendGrid plans to use the office it recently opened in London as a launching point for further expansion in Europe. Almost a third of SendGrid's revenue originates outside of the United States, “with no real infrastructure on the ground,” says Spruill. Additional expansion opportunities include Asia and South America.
Spruill says the capital raise also provides the company with the flexibility to quickly act on any strategic opportunities, including acquisitions. He adds that the company has its eye on any technology that could expand its core marketing product as well as its geographic footprint.
Over the past year, SendGrid has consolidated 80% of its workforce in Denver, which Spruill attributes to “improving efficiency and company excitement.” The profitable company racked in $20 million last quarter, a 38% growth year-over-year, and counts more than 42,000 paying customers. SendGrid’s client roster includes Airbnb, HubSpot, Spotify, Uber, Intuit and Costco.
SendGrid currently employs 300, but plans to expand to 900 employees in Denver and Colorado by 2020.