- New Series D round at nearly double prior valuation
- Prosperity7 Ventures adds significant fuel as the lead investor
- Business momentum continues into 2023 with 100%+ CAGR
SAN JOSE, Calif. – February 9, 2023 – Arrcus, the hyperscale networking software company and a leader in core, edge and multi-cloud network infrastructure, today announced the close of a fresh financing round that brings $50 million in total capital raised since the last venture financing round. Prosperity7 Ventures is leading the Series D equity round.
“Leading global customers are making the shift to Arrcus’ disruptively innovative ACE platform for data center switching, 5G carrier routing and multi-cloud networking. As we continue gaining market momentum, we are pleased to welcome Prosperity7 as our new lead investor,” said Shekar Ayyar, CEO and chairman at Arrcus. “With its extensive global reach, Prosperity7 is a great investor and partner for us in its ability to support us in our rapid growth and future investment requirements.”
“Modern networks that can flexibly leverage private infrastructure as well as public clouds and 5G will be key to unlocking the fourth industrial revolution and driving the next wave of digital transformation in critical industries that power the world,” said Aysar Tayeb, executive managing director of Prosperity7. “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.”
In this round of financing, Prosperity7 is joined by existing investors Clear Ventures, General Catalyst, Liberty Global and Lightspeed, as well as Silicon Valley Bank, which provided credit facilities. Upon completion of this financing round, in an investment climate where many companies are being marked down, Arrcus’ valuation will nearly double, which is a true testimony of the company’s leadership. The new funds will be used to grow Arrcus’ global go-to-market presence, in addition to strengthening engineering and R&D talent.
Even as markets overall were skittish and flat-to-declining revenue was the norm for most companies at the end of 2022, Arrcus finished the year strong and has a powerful advantage going into 2023. Key data points that demonstrate its strong performance include:
- 100%+ bookings CAGR at the end of 2022, demonstrating Arrcus’ rapid business momentum in the face of a tough economy
- 100%+ customer expansion year-over-year, pointing to the growing need for Arrcus’ ACE disaggregated switching and routing solutions with substantial reduction in capital and operating costs for customer networks
- A 70% increase in global headcount, highlighting that Arrcus continues to invest in people and growth
“As organizations worldwide adopt truly digital infrastructure to further their business strategies, they increasingly recognize that network modernization is essential to success,” said Brad Casemore, IDC research vice president, cloud and datacenter networking. “Network modernization involves greater network agility, flexibility, programmability and resilience, achieved through software-defined automated network intelligence. The Arrcus Connected Edge (ACE) platform has been designed with these capabilities in mind, addressing use cases that span the data center, core and edge, while providing operating efficiencies that allow customers to control infrastructure costs and accelerate the launch of revenue-generating network services.”
The Arrcus Connected Edge (ACE) platform as well as solutions based on ACE like SRv6 for 5G networks, Virtualized Distributed Routing (VDR), Hyperscale Datacenter switching and FlexMCN for multi-cloud connectivity are seeing widespread adoption across customers in many verticals spanning enterprises, communications service providers and cloud operators. And partners across the infrastructure and network applications landscape are rapidly adopting the Arrcus Partner with ACE (PACE) program.
Arrcus will demonstrate its innovative networking solutions at Mobile World Congress in Barcelona. Come meet with Arrcus and experience one of the company’s innovative demos in Hall 2, Stand 2D19. Secure a briefing or demonstration with Arrcus here.
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About Prosperity7 Ventures
Prosperity7 Ventures is the diversified growth fund of Aramco Ventures, a subsidiary of Aramco, the world’s leading integrated energy and chemicals company. The fund’s name derives from “Prosperity Well,” the seventh oil well drilled in Saudi Arabia and the first to strike commercial oil, paving the way to prosperity. Bringing forward this pioneering history, Prosperity7 invests globally with a long-term view in breakthrough technologies and transformational business models that bring prosperity and positive impacts on a vast scale. Official website: https://www.prosperity7vc.com/
Arrcus was founded to enhance business efficiency through superior network connectivity. The Arrcus Connected Edge (ACE) platform offers best-in-class networking with the most flexible consumption model at the lowest total cost of ownership. The Arrcus team consists of world-class technologists who have an unparalleled record in shipping industry-leading networking products, complemented by industry thought leaders, operating executives, strategic partners and top-tier VCs. The company is headquartered in San Jose, California. For more information, go to www.arrcus.com or follow @arrcusinc.