jumpcloud raises $75m series e as cloud directory service thrives during pandemic

JumpCloud, a cloud directory service that first appeared at TechCrunch Disrupt Battlefield in 2013, today revealed a $75 million Series E funding round. BlackRock spearheaded the investment, with additional participation from current investor General Atlantic.

While the company declined to disclose its present valuation, data from Crunchbase indicates that JumpCloud has now secured over $166 million in funding.

The landscape of IT operations has undergone significant changes since the company’s inception. Previously, the majority of organizations relied on Microsoft Active Directory within a predominantly Windows-based infrastructure. However, the environment has become increasingly diverse, encompassing multiple operating systems, web applications, cloud services, and mobile devices, necessitating a revised approach to directory structures.

JumpCloud’s co-founder and CEO, Rajat Bhargava, notes that the recent pandemic has only intensified the demand for services like his, as more businesses transition to cloud-based solutions. “The changes brought about by COVID-19 created greater challenges for IT departments in connecting users to the resources they require, and we believe that enabling team productivity is a core responsibility of any IT organization,” he explained.

He stated that their objective was to develop a self-sufficient cloud directory platform that would grant users access to the tools they need in a secure manner, while simultaneously providing IT departments with comprehensive control over access permissions.

The platform, which offers a complimentary version for up to 10 users across 10 systems indefinitely, currently serves 100,000 users. Bhargava reports that approximately 3,000 of these users are paying customers.

The company currently employs 300 individuals and intends to expand its workforce by 200-250 employees in the coming year, with a longer-term goal of adding 500 positions. Bhargava, who identifies as South Asian, emphasizes the importance of diversity and inclusion within the recruitment process. The company actively strives to ensure a diverse pool of candidates for every open position.

“We are committed to including diverse candidates in the hiring process for every role. Our recruiting team is dedicated to ensuring this happens with each new hire,” he said. He recognizes that fostering diversity is an ongoing effort and a widespread challenge within the technology sector, one that his company is actively working to address.

Following the onset of the pandemic, the Colorado-based company adopted a remote-first work model and will be recruiting talent from across the nation and internationally, which is expected to contribute to a more diverse workforce over time.

Given the $75 million investment and the achievement of Series E funding, it is natural to inquire about a potential initial public offering (IPO). However, Bhargava refrained from commenting on this matter. “We have just completed this $75 million funding round and are focused on the substantial work ahead,” he stated.