Arrcus, a San Jose-based cloud tech provider, has raised $50 million (£41m) in a Series D equity round led by Prosperity7 Ventures.
The company provides a cloud-based networking platform to data centre and telecoms companies looking to take advantage of multi-cloud networking and 5G edge compute.
Existing investors such as Clear Ventures, General Catalyst, Liberty Global and others also participated in the round.
Arrcus’ valuation has doubled to $400 million (£330m) since its last funding round in 2021. The company has raised $126 million (£104m) since it was founded in 2016.
The fresh cash injection will be used to expand Arrcus’ global presence and onboard more clients, as well as to invest in its R&D and engineering branches.
Brad Casemore, research vice president of data centre and multi-cloud networks at IDC, said: “Arrcus’ latest round of funding is a testament to the versatility of the ACE platform that enables multiple use cases for enterprises and network operators, helping them modernise their networks from edge to multi-cloud.”
“This is especially impressive in the current macroeconomic climate as customers are looking to control network infrastructure costs, along with improved ability to launch new monetizable network services.”
Arrcus achieved more than 100% CAGR in bookings in 2022, along with a 70% increase in global headcount, which the company says showcases its strength and ability to succeed in a tough economic climate.
Arrcus flagship product, the Arrcus Connected Edge (ACE) platform, aims to make connectivity more flexible and lest cost intensive. It utilises a range of solutions, such as SRv6 for 5G networks, virtualised distributed routing, and hyperscale data centre switching.
The company’s Partner with ACE (PACE) programme has also helped to spur adoption amongst partners in the connectivity sector.
Aysar Tayeb, executive managing director of Prosperity7, said: “We believe Arrcus is a disruptive leader in next generation network infrastructure that is software defined, flexible, programmable and efficient; and we are excited to support the company and its distinguished team.”
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