AppDirect has closed a $140 million Series E funding round led by J.P. Morgan Asset Management. Existing investors include Peter Thiel's Mithril Capital, Foundry Group, iNovia Capital and StarVest Partners.
The capital injection comes just eight months after AppDirect's $50 million Series D, and thrusts the cloud startup into the unicorn realm at a valuation of just over $1 billion. Since its founding in 2009, AppDirect has raised a total of $245 million.
The San Francisco-based startup makes a white-label app marketplace that allows businesses to sell software-as-a-service applications to other businesses. It currently powers the marketplaces of Comcast, Deutsche Telekom, Telstra, ADP and FICO -- providing app distribution services to more than 20 million businesses around the world.
The startup's business model is powerful, as it removes the R&D barrier for companies needing an app marketplace in a short period of time -- and there are plenty of companies that will be spending on these types of marketplaces. Estimates place the growth metrics for cloud-enabled businesses to upwards of $180 billion globally.
AppDirect plans to use the funding to innovate on its core platform, which consists of catalog management, identity management, subscription billing and data management.
According to AppDirect investors and co-founder and co-CEO Daniel Saks, the company has purposely flown under the radar since it's founding in 2009. The desire to keep a low profile has been one of its core strategies, along with the plan to keep the company independent.
"The AppDirect team has taken an 'under the radar' approach that has enabled it to quietly build one of the fastest-growing businesses in the Bay Area," Larry Unrein of JPMorgan said in a news release. "We've been interested in partnering with the team for some time."
AppDirect says it now employs more than 350 people around the world and has more than one million subscribers, an increase of almost 300 percent from this time last year.