Nylas Raises $120M to Fuel Developer Productivity | Nylas
The Expanding Role of APIs in Modern Business
Similar to companies such as Stripe and Twilio, Nylas has prioritized APIs as a crucial method for integrating intricate functionalities. These functionalities, while not necessarily central to a company’s core technology, are vital for overall business operations. Nylas, a company focused on streamlining integration, recently secured significant funding to broaden its service offerings.
Nylas Secures $120 Million in Funding
Nylas, which positions itself as a communications API platform, has successfully raised $120 million in a new funding round. This capital injection will be allocated towards expanding the range of APIs available, with a particular emphasis on productivity applications, as well as artificial intelligence and related tools designed to enhance workflow automation.
Valuation and Traction
While Nylas has not disclosed its current valuation, this funding represents a substantial increase in investment. The company has experienced considerable growth, demonstrating strong market traction.
Significant Growth in Users and API Requests
This latest funding round more than doubles the $55 million Nylas had previously raised since its founding in 2015. In 2018, following a $16 million Series B round, Nylas reported having “thousands of developers” utilizing its platform.
Currently, that number has surged to 80,000 developers. Nylas now processes approximately 1.2 billion API requests daily, handling around 20 terabytes of data each day. Revenue has also tripled over the past year.
Investors Backing Nylas’s Vision
The Series C funding round attracted a diverse group of investors. Tiger Global Management led the round, with participation from existing investors including Citi Ventures, Slack Fund, 8VC, and Round13 Capital.
New investors joining the round include Owl Rock Capital (a division of Blue Owl), Stripe co-founders Patrick Collison and John Collison, Klarna CEO Sebastian Siemiatkowski, and Tony Fadell.
Addressing the Siloed Productivity Tool Landscape
Nylas addresses a common challenge within the “API economy”: the isolation of productivity tools. Often, users must switch between separate applications to leverage these tools within their workflows. Developing integrations or new tools can be both time-intensive and technically complex.
From Email to a Comprehensive Platform
Nylas initially focused on simplifying email integration, enabling access to email data from major providers like Microsoft and Google, as well as services utilizing the IMAP protocol. This success led to expansion into scheduling, calendaring, a neural API for features like sentiment analysis and workflow automation, and security integrations to streamline the Google OAuth review process.
The Importance of APIs in Digital Transformation
“The increasing reliance on digital communications and connectivity has led companies across all sectors to depend on developers to solve critical business problems and create innovative products,” stated Gleb Polyakov, co-founder and CEO of Nylas.
“APIs are now fundamental to modern software development and digital transformation. We empower developers with the tools they need to respond quickly to market demands, differentiate themselves through customized user experiences, and improve operational efficiency through automation.”
Developers as Key Drivers of Business Innovation
The growth of Nylas reflects a broader trend: the increasing importance of developers in today’s digitized business environment. As organizations adopt more cloud-based applications, developers play a crucial role in maintaining and optimizing these systems. APIs are a vital component of their toolkit, contributing to the investor confidence in Nylas.
Tiger Global’s Perspective
“Companies are increasingly turning to APIs to automate productivity and discover new ways to support modern work and collaboration,” said John Curtius, a partner at Tiger. “This trend is essential for creating seamless, data-driven communications that drive digital transformation. We believe Nylas is uniquely positioned to lead the future of the API economy.” Curtius will be joining Nylas’s board of directors.
Correction: Blue Owl is not affiliated with State Farm.