SOURCE: Mailgun

Mailgun

February 22, 2017 08:00 ET

Mailgun Raises $50 Million to Spin out From Rackspace and Accelerate Growth as a Leading Automated Email Platform for Developers

SAN FRANCISCO, CA and SAN ANTONIO, TX--(Marketwired - February 22, 2017) -

  • Mailgun becomes an independent transactional email deliverability company
  • Investment was led by Turn/River Capital, with participation from Scaleworks and Rackspace
  • Capital will be used to accelerate product development and expand customer support

Mailgun, a leading email automation platform for developers, today announced it has raised $50M in financing led by Turn/River Capital, with participation from Scaleworks and Rackspace. The investment and related spin out transaction will establish Mailgun as an independent company from Rackspace, and will be used to accelerate Mailgun's product roadmap, drive growth initiatives, and expand customer support.

Built for developers, Mailgun provides a powerful set of APIs that allows users to send, receive, and track email easily from within their applications - without managing an email server or becoming an expert in email setup, operations and deliverability. This full-featured email service allows customers to engage their users, and optimize the email capability of their application and websites with all the analytics and data needed to measure the impact. Leading development teams such as Slack, GitHub, Stripe, Lyft, OfferUp, Zapier and Cinemark seamlessly integrate their products with Mailgun to power their email. As an email deliverability expert, Mailgun helps its customers navigate the world of email reputation to ensure they can deliver an exceptional customer experience. Combined with best in class support, Mailgun allows developers to focus on building great products, not the deliverability of their emails.

The newly formed company named Mailgun veteran William Conway as its CEO. William previously served as GM of Mailgun inside Rackspace.

"Developers are at the heart of everything we do. We are focused on solving the daily problems developers face when integrating and managing email inside of their applications. Our independence and influx of growth capital will allow Mailgun to drive a product vision that will thrill developers when they see what is coming down the pipe," said William Conway, CEO, Mailgun. "Turn/River Capital's experience growing similar developer tools makes them a perfect match to help drive Mailgun's continued growth."

"Mailgun has grown consistently by providing the most scalable and developer friendly email sending infrastructure. It's used daily by thousands of developers who build their app's email communication entirely on top of Mailgun's easy to use APIs," said Dominic Ang, Turn/River Capital's founder and Managing Partner. "We are excited to provide capital and our own unique operational expertise in SaaS sales and marketing in support of the Mailgun team as they aim to solve email deliverability for all customers."

ABOUT MAILGUN
Built for developers, Mailgun provides a powerful set of APIs that allows users to send, receive, and track email easily from within their applications - without managing an email server or becoming an expert in email setup, operations and deliverability. This full-featured email service allows customers to engage their users, and optimize the email capability of their application and websites with all the analytics and data needed to measure the impact. Mailgun is trusted by thousands of smart software development teams from leading companies in the industry including Slack, GitHub, Stripe, Lyft, OfferUp, Zapier, and Cinemark. Mailgun is headquartered in San Antonio, with offices in Austin and San Francisco. For more information on Mailgun, visit www.mailgun.com or follow us on Twitter, GitHub, Facebook, and LinkedIn.

ABOUT TURN/RIVER CAPITAL
Turn/River specializes in growth capital investments, founder liquidity, buyouts, spin-outs, recapitalizations of technology, web and SaaS companies. Our strategy is to combine rigorous, iterative marketing, sales and operational execution with flexible capital to help companies double or triple their growth, and build value for everyone. Turn/River Capital is headquartered in San Francisco. For more information, visit www.turnrivercapital.com or follow us on Twitter and LinkedIn.

ABOUT SCALEWORKS
Scaleworks is a $60m Venture Equity fund that acquires and operates B2B SaaS companies. We build great teams and focus on strategic clarity that can take companies to the next level of growth. Scaleworks was founded in 2016 by Lew Moorman and Ed Byrne and is based in San Antonio. For more information, visit www.scaleworks.com.

ABOUT RACKSPACE
Rackspace, the #1 managed cloud company, helps businesses tap the power of hosting and cloud computing without the complexity and cost of managing it on their own. Rackspace engineers deliver specialized expertise, easy-to-use tools, and Fanatical Support® for leading technologies including AWS, VMware, Microsoft, OpenStack and others. The company serves customers in 120 countries, including more than half of the FORTUNE 100. Rackspace was named a leader in the 2015 Gartner Magic Quadrant for Cloud-Enabled Managed Hosting, and has been honored by Fortune, Forbes, and others as one of the best companies to work for. Learn more at www.rackspace.com.

Contact Information