Rancher Labs' significant year on year growth in revenue and rapid expansion of its commercial customer base growth reflect robust demand for Kubernetes within the enterprise
FREMONT, CA: Rancher Labs, the creator of the most widely used Kubernetes management platform, raised $40 million in Series D round of financing. The round was led by Telstra Ventures with participation from existing investors Mayfield, Nexus Venture Partners, GRC SinoGreen, and F&G Ventures, bringing total funding to date to $95 million. One of its investors, Telstra Corporation, is a Rancher Labs customer and is Australia's largest telecommunications company. The company will use its Series D funding to expand the focus on product innovation, increase investment in go-to-market activities, and accelerate market expansion.
Sheng Liang, CEO at Rancher Labs, said, "In 2019, we experienced 169 percent year-on-year revenue growth, and this round of funding is the ultimate validation of the market and our unique technologies. Just as Linux became the standard computing platform for the data center, cloud, and devices in the 2000s, we fundamentally believe Kubernetes is fast becoming the ubiquitous enterprise computing platform for multi-cloud, heterogeneous IT environments in the 2020s."
According to 451 Research, 76 percent of enterprises worldwide are set to standardize on Kubernetes by 2022, making it one of the most relevant platform to leverage business strategy and cloud-native applications. Rancher Labs will use the proceeds of the fund to continue executing against their Run Kubernetes Everywhere strategy, specifically in three areas:
Accelerate Innovation - Leveraging Kubernetes as the common computing standard and the company will continue to innovate in key areas, including various cluster federation, fleet management, and Kubernetes at the edge.
Go-To-Market Expansion - The company will expand sales coverage, marketing, finance, operations, customer success, and customer support. Additionally, the company has plans to expand geographic coverage within and beyond the fourteen countries where they currently operate.
Market Expansion - Leveraging their leadership in Kubernetes at the edge, the company will work with leading technology companies to develop innovative solutions in markets including 5G, digital factories, connected cars, video surveillance, and medical research.
Telstra Ventures first became interested in Rancher Labs based on Telstra Corporation's successes using Rancher to support its core contact center, customer network, and services provisioning. "Outside of Google, Rancher was one of the very early companies to recognize the profound impacts that Kubernetes would have on the global IT market. During our early investment discussion, I recall Sheng saying that 'Kubernetes could become the TCP/IP of computing.' That was a very profound statement with a massively attractive vision," said Steve Schmidt, an investment partner who leads Telstra Venture's enterprise investments.
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