Nextiva, a Scottsdale-based connected communications company, has announced a $200 million raise from Goldman Sachs at a $2.7 billion valuation. This is the company’s first external funding round.
The investment follows a year of growth for Nextiva, which reports $250 million in ARR. Additionally, the company boasts continued product development and market leadership. According to a statement from Nextiva, it’s the largest privately held business communications provider in the U.S. Other companies in this space include RingCentral, Vonage and Zoom, among others.
The company will use the money to innovate connected communications, a major need as more companies move to hybrid or remote models. It also looks forward to global expansion. In addition to the company’s Scottsdale headquarters, the company currently has offices in Kyiv and Guadalajara.
Nextiva’s cloud-based platform NextOS is designed to improve productivity and engagement between sales, service and marketing teams. NextOS connects business applications, AI and automation to manage all communications, both between customers and teams, in one place. The platform works with a variety of applications, from those built for customer sales and service to analytics.
“Nextiva creates a seamless experience by surfacing insights and learnings from every interaction,” said Nextiva co-founder and CEO Tomas Gorny. “By doing this, Nextiva enables companies of all sizes and their teams to better understand and serve their customers and accelerate the growth of their business.”
According to Nextiva, the massive raise and valuation reflect a market shift toward more tightly integrated tools and workflows that prioritize customer communication and engagement. The company notes that, on average, businesses use between 15 to 25 apps to manage communication with customers and across teams. This likely results in clunky and inefficient workflows and lost customer data.
“I cannot envision a world five to 10 years from now that people still juggle between all of the applications just so that they can communicate with customers,” Gorny told Bloomberg.
It may go without saying, but the investment from Goldman Sachs shows is evidence of the company’s faith in Nextiva’s potential.
“As a native communications company, Nextiva is at the nexus of customer conversation and engagement,” Stephen Kerns, a vice president within Goldman Sachs Asset Management, said in a statement. “They have built a market-leading business with an outstanding team, and we look forward to supporting Nextiva as they help companies discover the power of connected communications.”