Twilio raises $130 million — another sign it’s nearing an IPO?

Twilio has raised $130 million from investors in its latest financing round, the company announced Wednesday.

Twilio, a cloud communication business platform based in San Francisco, said it will use the additional funding to build out new products and expand globally, and potentially make more acquisitions.

The Series E round was led by institutional investors Fidelity and T. Rowe Price, and included Altimeter Capital Management, Arrowpoint Partners, Amazon and Salesforce Ventures. Twilio has now raised about $234 million from investors; the $130 million round is nearly double its previous round.

Twilio’s platform lets developers and businesses integrate voice, text and other communications services into mobile and web app. Its customers include Uber, Box, DocuSign, Nordstrom, Coca-Cola, Walmart and The Home Depot.

Founded in 2008, the company is widely expected to soon file an initial public offering. Earlier this month, Twilio sent a letter to shareholders offering to repurchase up to $30 million of their Series A preferred stock — a sign it could be gearing up for a public debut, as TechCrunch reported.

Twilio also told the Wall Street Journal in February that it was adding $1 million in recurring revenue every seven days, having ended 2014 with an annual revenue run rate of $100 million. But its finances do raise concerns. Like many quickly growing cloud-based startups, Twilio is also losing money. As long as it continues spending on acquisitions and marketing, it likely won’t be profitable anytime soon.

But Twilio has also gone through some internal tumult, with high employee churn and a recent exodus of some of its top technical people.

The company has more than 400 employees with offices in San Francisco, Mountain View, New York City, London, Munich, Dublin, Tallinn, Estonia and Bogota, Colombia.

Illustration from Thinkstock


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