WSO2 closes $93 million Series E funding round

WSO2 has announced that it has completed its Series E funding round at USD 93 million, with USD 90 million coming in from the Goldman Sachs Group and USD 3 million from Redstart Labs (backed by India’s Info Edge). Back in late 2021, the American multinational investment bank and financial services company announced that it was investing in WSO2 following Goldman Sachs’ increasing interest in the tech space.

Accordingly, the funding is to be utilized for expanding WSO2’s cloud-based low-code platform, specifically to Choreo and Asgardeo. Further investment will go toward WSO2 API Manager, WSO2 Identity Server, and Ballerina open-source language. Additionally, the company will look to accelerate its geographical presence and aim to go public in the US by 2025.

Commenting on the round of funding and RedStart’s investment, WSO2 founder Dr. Sanjiva Weerawarana mentions that “RedStart, as part of Info Edge with its deep market understanding, extensive network, and success in investing in digital businesses like Zomato, will play a strategic role in helping us accelerate our growth and customer adoption in India.”

WSO2 currently has offices in Sri Lanka, the US, UK, Australia, Brazil, the Middle East, and Germany. Following the Series E funding round, the company hopes to open an office in India, hiring between 50 – 100 staff over the course of two years. According to YourStory, WSO2 has already registered a subsidiary in India and is currently on the lookout for a General Manager to handle the operations in the country.

“As digital transformation accelerates across Indian enterprises and also as open-source forms the foundation of government’s Digital India initiative, we expect India to emerge as a key market for WSO2 not only for its revenue potential but also for developer adoption,” says Amit Behl, a partner at Info Edge.

Accelerating growth

17 years since it was founded, WSO2 has attracted over 800 customers across 90 countries with some of its clientele including names like eBay, American Express, Qantas, Panasonic, Motorola, and a host of others. However, the company only became profitable and cash positive back in 2017 which was the first time ever in 12 years. WSO2 recorded an Annual Recurring Revenue of USD 63 million for 2021 and is forecasting USD 90 million for this year.

In related news, WSO2 is also reportedly exploring tech acquisition opportunities, specifically ones valued at less than USD 90 million. Back in June 2021, WSO2 bought Platformer with the aim of expanding the Kubernetes capabilities of Choreo.

Now, with the completed Series E funding the corporate has raised USD 140 million in equity capital to date, along with a valuation of over USD 600 million. Regardless, time will tell what the future holds for WSO2 as the open-source enterprise platform provider looks to capitalize on its growth.