Auth0 snags $55M Series D, seeks international expansion
Auth0, a startup based in Seattle, has been helping developers with a set of APIs to build authentication into their applications for the last five years. It’s raised a fair bit of money along the way to help extend that mission, and today the company announced a $55 million Series D.
This round was led by led by Sapphire Ventures with help from World Innovation Lab, and existing investors Bessemer Venture Partners, Trinity Ventures, Meritech Capital and K9 Ventures. Today’s investment brings the total raised to $110 million. The company did not want to share its valuation.
CEO Eugenio Pace said the investment should help them expand further internationally. In fact, one of the investors, World Innovation Lab, is based in Japan and should help with their presence there. “Japan is an important market for us and they should help explain to us how the market works there,” he said.
The company offers an easy way for developers to build in authentication services into their applications, also known as Identification as a Service (IDaaS). It’s a lot like Stripe for payments or Twilio for messaging. Instead of building the authentication layer from scratch, they simply add a few lines of code and can take advantage of the services available on the Auth0 platform.
That platform includes a range of service such as single-sign on, two-factor identification, passwordless log-on and breached password detection.
They have a free tier, which doesn’t even require a credit card, and pay tiers based on the types of users — regular versus enterprise — along with the number of users. They also charge based on machine-to-machine authentication. Pace reports they have 3500 paying customers and tens of thousands of users on the free tier.
All of that has added up to a pretty decent business. While Pace would not share specific numbers, he did indicate the company doubled its revenue last year and expected to do so again this year.
With a cadence of getting funding every year for the last three years, Pace says this round may mark the end of that fundraising cycle for a time. He wasn’t ready to commit to the idea of an IPO, saying that is likely a couple of years away, but he says the company is close to profitability.
With the new influx of money, the company does plan to expand its workforce as moves into markets across the world . They currently have 300 employees, but within a year he expects to be between 400 and 450 worldwide.
The company’s last round was a $30 million Series C last June led by Meritech Capital Partners.