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Cloud service DigitalOcean raises $83m in latest funding round

DigitalOcean has completed an $83 million founding round led by Access Industries, which has previously assisted the likes of Uber and Alibaba.

Cloud infrastructure provider DigitalOcean has secured $83 million in a Series B funding round, boosting its known overall financial backing to more than $170 million.

The latest funding round was led by Access Industries, owned by entrepreneur and philanthropist Leonard Blavatnik -- who amongst other ventures acquired Warner Music Group for $3.3 billion in 2011 -- with participation from venture capital firm Andreessen Horowitz, which led the Series A funding round in March last year.

Headquartered in New York, the cloud infrastructure provider said in a blog post that the latest cash injection will go directly into growing its team and expanding product offerings.

"As the infrastructure needs of our developer community have continued to evolve, we have aspired to, as well," the company said.

The company said that to date, it has seen over 500,000 developers deploy more than 6 million "droplets" -- cloud servers -- on DigitalOcean. In May, the company was ranked by Netcraft as the world's second-largest web hosting provider.

"We began with a vision to simplify infrastructure that will change how millions of developers build, deploy, and scale web applications," CEO and co-founder Ben Uretsky said.

"Our investors share our vision, and they'll be essential partners in our continued growth."

In March 2014, the cloud provider completed its Series A funding round, raising $37.2 million that the company said would be used to hire top-tier engineers.

"DigitalOcean's growth has been explosive over the last 12 months," Uretsky said at the time.

In December, the company also secured a $50 million credit facility from funds managed by global investment firm Fortress Investment Group LLC.

Meanwhile, the company's Series B funding round leader Access Industries has a habit of injecting funds into ventures where it can maximise long-­term value, DigitalOcean said.

The New York-based global investments firm has previously invested in China's Alibaba group -- which this week announced its intention to pump $206.45 million into SingPost; Facebook; music-streaming service Spotify; Uber; and Pinterest, which recently turned its scrapbooking app into a web store.