The software-defined wide area networking (SD-WAN) vendor Aryaka secured $45 million in Series D funding today led by Third Point Ventures and adding new investor Deutsche Telekom Capital Partners. The round also included participation from existing investors.
In October 2016, Aryaka said it had raised $75 million in funding at that point. The company is aiming for a valuation of more than $1 billion for a potential IPO in 2018.
Deutsche Telekom Capital Partners is the venture capital arm for Deutsche Telekom (DT), the telco. Today’s announcement doesn’t mean that DT is using Aryaka’s SD-WAN technology, but the vendor is working on that.
“We are talking to them,” says Shehzad Karkhanawala, Aryaka’s public relations manager. “I can’t disclose the details, but that’s our full expectation.”
In today’s funding announcement, Jack Young, the head of Venture Capital at Deutsche Telekom Capital Partners, says of Aryaka, “The company’s ability to deliver significantly faster application performance in global locations uniquely addresses the shortcomings of other connectivity solutions, such as MPLS and Internet-based SD-WANs.”
Even though DT is a telco that provides MPLS, it sounds from Young’s comment that it recognizes the limitations of the technology.
“MPLS is not a fit for global enterprises,” says Karkhanawala. “They’re having issues with mission critical applications deployed on a global scale. We’re getting interest from telcos that are looking to close that gap.”
In related news today, Aidan Cullen joined Aryaka as chief financial officer. He has held CFO positions at CliQr Technology, which was purchased by Cisco, as well as CFO with Gigamon and Sylantro Systems, which was bought by Broadsoft.