Algoblu, a Chinese software-defined wide area network (SD-WAN) service provider, has raised about RMB100 million (US$14.85 million) in a series C+ round of financing from the country’s tech-focused investment firm WestSummit Capital, according to a statement released on Monday.
Founded in 2012, Algoblu provides software-defined networking (SDN)-based virtual network applications and services for group companies and end-to-end virtual link solutions for software as a service (SaaS) companies. It also provides SDN virtual link acceleration services and vFusion, a cloud management portal for internet service providers (ISPs) to operate the cloud servers they deliver to customers.
The Beijing-based company has built an SD-WAN backbone network with more than 200 nodes around the world, providing network services such as traffic acceleration, VPN networking, SaaS service guarantee, and video conferencing quality of service (QoS) guarantee for nearly 100 enterprises. Its customers include Volvo, Pfizer, Kempinski Hotels, Gome, Xiaomi and other companies.
"China’s telecom market is extremely complex and fragmented, so such services are needed for multinational companies operating in China or Chinese companies that achieve globalization. China’s soil will eventually breed an SD-WAN service platform company, providing enterprises with flexible and convenient network communication support," said Yang Lei, managing partner of WestSummit Capital. "Algoblu is in line with our expectations from the team, products and operations."
Proceeds of this round will be used for research and development, network upgrade, recruitment, and marketing.
According to Chinese business data provider Tianyancha, Algoblu raised a strategic investment worth RMB100 (US$14.85 million) led by Australia’s Telstra and Chinese venture capital firm Dohold Fund in 2018. The company secured the same amount of capital in a series C round led by private equity firm Cathy Capital in July 2017.
It also raised a series B round from Korea Investment Partners in 2016 and a series A round from Sumitomo Corporation Equity Asia Limited in 2013.