Cloud Software AppDynamics Raises $50 Million in Funding Round

Posted on January 30, 2013 at 11:10 am

AppDynamics has completed a $50 million Series D growth financing round.

Application performance management provider AppDynamics announced on Wednesday it has completed a $50 million Series D growth financing round.

This latest round was led by new investor Institutional Venture Partners, together with AppDynamics’ current investors, consisting of Greylock Partners, Kleiner Perkins Caufield & Byers, and Lightspeed Venture Partners.

AppDynamics says the financing will support the startup’s expansion strategy into the worldwide enterprise market, increase investment in R&D, and accelerate hiring.

The company’s flagship product, AppDynamics Application Performance Management, helps businesses to administer the transition to a distributed, cloud-based architecture.

AppDynamics uses a freemium, “lend and extend” model and currently monitors over 51 billion transactions per day many of the customers of its Pro product. The company says that its paying customers usually purchase 365 days or longer software licenses.

The new funding round, which marks the most important within the company’s history, brings its total financing to $86.5 million.

AppDynamics has seen significant sales growth for 2 consecutive years wherein it has experienced 300 percent year over year revenue growth.

Since its founding in 2008, AppDynamics has expanded to greater than 200 employees in its headquarters of San Francisco and global offices in UK, France, and Germany.

“Businesses around the world are adopting cloud and agile architectures to run their mission-critical applications and AppDynamics is becoming the leading management platform to assist them through that transition,” said Jyoti Bansal, CEO of AppDynamics. “In 2012 we saw rising demand for AppDynamics solution, particularly from organizations purchasing for the following generation of an Application Performance Management Platform which could effectively scale with their growth.”

Talk back: Are you now using AppDynamics Application Performance Management- Do you observed this latest funding round can assist the corporate fulfill its expansion strategy- Let us know in a comment.

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