Esper Secures Series C Funding - DevOps Demand Fuels Growth

Esper Secures $60 Million Series C Funding to Meet Growing Demand

The DevOps SaaS platform, Esper, is experiencing significant growth alongside the expanding number of connected devices. To proactively address this increasing demand, the company has successfully completed a new funding round.

Just five months following a $30 million Series B announcement, Esper has secured an additional $60 million in Series C funding. This latest investment was spearheaded by Insight Partners, with participation from existing investors including Scale Venture Partners, Madrona Ventures, and Root Ventures. This brings the total funding raised by Esper to $100 million.

Exponential Growth in the IoT Landscape

Yadhu Gopalan, co-founder and CEO, shared with TechCrunch that the current number of IoT devices is already in the billions, and this figure is expanding at an exponential rate annually. This growth is fueled by both technological advancements and a shift in corporate priorities.

He explained that companies are recognizing the need for new operational models, particularly in light of the global pandemic. These include remote business solutions and innovative customer-facing applications. The transition towards cloud connectivity is a key driver, as businesses move away from isolated systems to prioritize superior customer experiences. Esper is focused on resolving challenges related to this evolution.

Organizations can leverage Esper to remotely manage, secure, scale, and update devices and their associated applications. This is achieved through the implementation of DevOps practices, which Gopalan identifies as becoming industry standards.

Despite progress, Gopalan believes the industry is “approximately a decade behind its potential.” Esper aims to bridge this gap by providing the necessary tools and infrastructure.

A Thriving Market

The Internet of Things market is not decelerating. Projections indicate a $1.1 trillion market size by 2027, with an anticipated 30.9 billion active IoT-connected devices by 2025. This encompasses a wide range of enterprise devices, including tablets utilized in travel, hospitality, and warehousing, alongside medical equipment, fitness devices, and in-store kiosks.

Currently, Esper serves over 200 paying customers and boasts a developer base exceeding 2,000 users actively engaged in product development. The company is on track to achieve revenue growth four times greater than the previous year. Furthermore, Esper has quadrupled its workforce this year, according to Gopalan.

Facilitating Access and Demonstrating Value

To accommodate growing demand, Esper offers organizations the opportunity to sign up and begin utilizing the platform with up to 100 devices, free of charge. This allows potential clients to evaluate the platform's capabilities firsthand. The company is also expanding its partner network and exploring additional distribution channels.

“Our goal is to allow potential customers to experience the benefits of our platform before committing to a full-scale implementation,” Gopalan stated. “This provides a practical demonstration of the value we deliver, and ensures a seamless transition if they choose to continue.”

Strategic Partnership and Future Growth

Insight Partners proactively reached out to Esper, and the company enthusiastically accepted the opportunity to collaborate. Gopalan expressed that this partnership will accelerate their progress and enable them to more accurately anticipate market trends.

The new funding will be strategically allocated to expand customer reach. While already a leader in the field, Esper recognizes the importance of continuous improvement and plans to achieve this through targeted marketing initiatives and strategic partnerships.

Focus on Product Development and Customer Success

Esper’s immediate focus is on enhancing its product offerings and improving the overall customer experience.

“We anticipate managing fleets of millions of devices in the near future, and will need to provide customers with the tools to effectively visualize and manage these large-scale deployments,” Gopalan explained. “We are committed to leading this space, addressing the needs of mission-critical devices that require continuous operation and improvement, and we are uniquely positioned to enable that.”