Investors still believe in email
Email platform specialist SendGrid has raised $20m in funding to help support its next phase of growth.
The round includes funds from new investor Bain Capital Ventures, as well as reinvestments from Bessemer Venture Partners and Foundry Group.
Funding was secured with the guidance and support of Sameer Dholakia, SendGrid’s recently appointed chief executive.
"This investment will allow us to expand the functionality of our platform and increase our channels to market," he said.
Radicati Group expects spending on email platforms to reach $12bn market by 2016, and traffic to grow to 192 billion emails sent per day.
Researcher Forrester projects spending on email marketing services will grow to $2.8bn by 2018.
SendGrid email platform sends more than 435 million emails per day and 15 billion emails per month. In total, the platform has sent 300 billion emails.
The company has a range of internet and mobile-based customers, including Airbnb, Spotify, Uber, Linkedin and FourSquare, as well as more traditional enterprises like Walmart, Intuit and Costco.
"We are excited to be working with Sameer Dholakia and his team as SendGrid embarks on their next phase of growth and builds on their strong leadership position," said Ajay Agarwal, managing director at Bain Capital Ventures.