Email automation platform Mailgun spun out of US-based cloud services provider Rackspace yesterday with $50m of financing in a round that included its parent company.
Investment firm Turn/River led the round, which also featured enterprise software-focused venture capital fund Scaleworks.
Mailgun provides a range of tools enabling developers to build applications that allow users to send, receive and manage email without managing a dedicated email server.
Rackspace originally acquired Mailgun for an undisclosed amount in 2012, two years after it was founded, in a deal that provided exits for early backers including Y Combinator and SV Angel.
Development teams at companies including messaging technology provider Slack, payment services firm Stripe, ride hailing app developer Lyft and online hosting platform GitHub are already using Mailgun.
William Conway, formerly general manager of Mailgun when it was part of Rackspace, has been appointed CEO of the newly independent company. He said: “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.”