Alianza – a leading cloud communications platform for service providers – recently announced it raised $61 million in new growth equity and debt financing. The latest funding round highlights a 70% increase in valuation for the company since March 2021.
A syndicate of undisclosed institutional investors and strategic partners supported this funding round. Texas Capital Bank provided the debt financing.
The third quarter of 2023 has marked nine consecutive years of quarter-over-quarter revenue growth for Alianza. And future market opportunities are substantial for the company, with over 100 million voice lines in North America nearing end-of-life and primed for transition from legacy TDM and softswitch infrastructure to the cloud. Alianza will allocate new funding to:
— Expand its sales team by 400% to penetrate current market opportunities.
— Accelerate delivery of its previously announced commitment to invest $200 million in R&D to empower cloud communications innovation for service providers.
— Urgency for transforming network infrastructure has only increased in the past year as the gap between legacy network capabilities and over-the-top competitors continues to grow, increasingly leaving communications service providers on the sidelines, rather than competing for valuable services revenue. The cloudification of core communications networks is foundational for service providers to offer innovative retail solutions, as well as a prerequisite to leverage the future benefits of generative AI.
KEY QUOTES:
“As the industry rises to face new market dynamics and rapidly evolving innovations in technology, recent investments in Alianza mark another milestone for the company, reinforcing the power of our full-stack capabilities to enable service providers to meet the future from a position of strength.”
— Brian Beutler, founder and CEO of Alianza
“Service providers are seeking next-gen voice and unified communications solutions as their existing infrastructure reaches end-of-life, and they look to improve their positioning in an increasingly competitive market. In order for service providers to thrive, they must become more than broadband network operators. They must reduce their cost-of-service delivery while improving the end-user customers’ experience. They need to transform from telcos to tech-cos. Alianza is well positioned to help service providers as they navigate this transition.”
— Brent Kelly, Principal Analyst in Omdia’s Digital Workplace practice
