VC funding: Aryaka raises $50 mn led by Goldman Sachs

Aryaka, a managed SD-WAN company, has closed a $50 million Series F round — led by Goldman Sachs Private Capital Investing.

This brings Aryaka’s total funding to $184 million. Goldman Sachs will be joining existing investors including Trinity Ventures, Mohr Davidow Ventures, Nexus Venture Partners, InterWest Partners, Presidio Ventures, Third Point Ventures and DTCP.

Aryaka will use the funds to expand business operations, grow revenues and hire talent to ensure innovation in SD-WAN space.

The US-based SD-WAN company aims to win larger deals. Aryaka currently has more than 800 customers, including JAS Worldwide, HMSHost International, Makino, Pilot Freight, Element Solutions, Allegis, and City & Guilds Group.

SD-WAN market revenue rose 23 percent quarter on quarter to $284 million during the third quarter of 2018, according to a report from IHS Markit.

VMware led the global SD-WAN market with 19 percent share. Cisco is the second largest vendor in the SD-WAN market with 13 percent revenue share. Aryaka is third position in the SD-WAN market.

The global SD-WAN market is expected to grow from $1 billion in 2018 to $4.1 billion by 2023, at a Compound Annual Growth Rate (CAGR) of 32.7 percent during the forecast period.

SD-WAN technologies will grow at a compounded annual growth rate of 35 percent over the next five years, research firm Dell’Oro Group said. The new report forecasts the sales of SD-WAN software to grow at almost double the rate of hardware.

“The SD-WAN software components are the key differentiators of vendors’ offerings, and we expect controller and virtualized network functions software revenue to account for the large majority of the market size,” said Shin Umeda, vice president at Dell’Oro Group.

The demand for SD-WAN solution is growing across every line of businesses to manage the complex and diverse network infrastructure at a low cost.

“Our research shows that Aryaka offers a compelling solution for the SD-WAN market that continues to grow exponentially including increased adoption of SD-WAN managed services,” said Matthew Dorr, vice president at Goldman Sachs Private Capital Investing.

This new investment allows us to further accelerate our business momentum and endorses our growth strategy,” said Matt Carter, CEO of Aryaka.

Aryaka has partnerships with public cloud providers including AWS, Microsoft Azure, Google, Oracle and others. These partnerships allow Aryaka to offer the best managed cloud connectivity options and deliver a multi-cloud solution.

Aryaka has partnerships with Palo Alto Networks, Symantec and Zscaler to offer security solution to the edge.