Infobip, an IT and telecommunications company, has reportedly raised nearly $200 million in Series A funding round, which was led by One Equity Partners, a private equity firm.
People with knowledge of the matter have stated that the recent announcement is the company’s 1st external funding round, which was raised in a deal that values the cloud communications firm in Croatia at nearly $1 billion. The funds will assist the company in further expanding its stance in the U.S. via potential mergers and acquisitions. These expansion strategies will help gain a competitive edge over its rivals such as Twilio that is based in San Francisco.
Infobip, since it was founded in 2006, has been offering technology for omnichannel marketing, enabling customers to communicate with companies remotely using text messages or 3rd-party apps. Its customers include Uber, Unilever, and Costco, among other global firms. It is also capable of providing its services to a wide range of customers, reportedly reaching 7 billion mobile devices in over 190 countries.
In 2019, Infobip had registered $710 million (€602 million) revenue, which was a 38% hike as compared to 2018. It also has recorded an increase in SMS volumes in April as compared to February 2020, as several businesses are reaching out to their customers through virtual communications amid the global COVID-19 lockdown.
Source further added that the company is currently lending a strong focus on business expansion and is considering an IPO (initial public offering) in the U.S. as per reports from the IDC (International Data Corporation). The cloud-based delivery model, Communication Platforms as a Service (CPaaS), is expected to record high adoption, with potential expansion of its revenue from $3.3 billion in 2018 to $17.2 billion in 2023.
Citi and Morrison Foerster served as the advisors to Infobip in the recent $200 million funding round.