DigitalOcean scored another $50 million in Series C financing just months after closing a precarious $320 million debt financing that the cloud provider claimed would set it on a course toward profitability.

The latest funding round was led by Access Industries and included Andreessen Horowitz (a16z). It also propelled DigitalOcean’s equity valuation to $1.15 billion.

DigitalOcean CEO Yancey Spruill explained in a statement that the new funding added “strength to our balance sheet enabling us to better serve our customers’ demand for our platform.” He added that the firm has seen increased demand during the ongoing COVID-19 pandemic from “businesses transitioning to the cloud.”

In an email to SDxCentral, the company explained that it was not "seeking additional funding, but while recently reviewing our business performance and outlook with our investors at Access and a16z, they were interested in investing for our next phase of growth and we accepted as this capital provides us with more flexibility to execute our strategy."

Spruill also noted in his statement that with the new funding the company is “now freed up to focus on accelerating revenue growth, transitioning to free cash flow profitability in 2020, and positioning our company ultimately to be a public company.”

Those IPO plans, however, remain TBD.

That sentiment echoed what the executive said back in February when DigitalOcean closed on its debt financing arrangement with a “consortium of blue-chip commercial lenders.” Spruill said at that time that the arrangement, which was initially valued at $300 million, “fully funded our business to profitability and reach our aspiration of more than $1 billion in revenue within the next five years.”

DigitalOcean is currently generating around $300 million in annual recurring revenue.

“This debt financing is an important milestone for us as it means we have now fully funded the business and don’t need to raise any more money before achieving profitability,” Spruill noted in an email to SDxCentral at that time. He explained that the bank financing model preserves “more value for shareholders” compared with an equity raise. “With our business model and focus on profitability, debt is a low risk and much more cost-effective approach than a capital raise which would dilute the existing equity.”

DigitalOcean had not yet responded by press time to questions on how this new funding might impact its profitability goals.

That previous debt financing also followed on the heels of an internal restructuring that resulted in dozens of job cuts. The company did not provide specifics on the number of jobs that were cut, but reports indicated it could be up to 50 positions, which was about 10% of its workforce. DigitalOcean has offices in New York City; Cambridge, Massachusetts; and Bangalore, India.

Spruill at that time did not directly answer a question regarding what impact the debt financing would have on its job cuts but noted that the “restructuring was done to streamline our organization and enable our teams to have clearer lines of ownership on our critical priorities and initiatives. It was not financially driven, but rather a difficult, but important, step to set our team up for growth.”

DigitalOcean was founded in 2012, and has raised more than $655 million in funding across various debt financing and VC funding rounds, according to Crunchbase. It’s often lumped into the “others” category among cloud providers.

CORRECTION: This story has been corrected to note that DigitalOcean is now recording $300 million in annual recurring revenue.