INSIGHTS

SEOUL, South Korea–(BUSINESS WIRE)–MegazoneCloud, a leading cloud-managed service provider (MSP) based in Asia, has raised a record of USD 122M in the Series B round on top of USD 42M funding in the previous round, closed in January 2019.

With more than 20 investors participated in the funding round, the trend of businesses adopting cloud services for digital transformation had investors’ eye on MegazoneCloud. By bringing USD 122M fresh funding, MegazoneCloud has laid a strong foundation to position itself as an undisputed leader in the Asian cloud MSP market.

“We are excited that dozens of investors joined our journey at a critical stage. We will accelerate the expansion of our global businesses in the Asian market including Japan,” said Max Lee, CEO of MegazoneCloud.

One of the investors said, “We are confident that MegazoneCloud’s total cloud service delivery competence and customer-first approach will continue to drive rapid but sustainable growth over the long term.”

MegazoneCloud made its foray into South Korea’s cloud MSP business in 2012, and its revenue continued to grow from USD 0.4M in 2014 to USD 144M in 2018, with its operation expanding to the U.S., Japan, China, and other areas of Asia. Proving the potential of the market and company, MegazoneCloud secured USD 42M in its Series A round in January 2019.

With the investment MegazoneCloud quickly enhanced its capabilities by attracting more talents and solidifying global partnerships with not only cloud service providers but also cloud and AI-based tech companies such as Graphcore, a UK-based AI chipmaker.

Since the closing of Series A, MegazoneCloud has acquired multiple businesses to widen service and solution offerings and established joint ventures with LG CNS, an IT service arm of LG Group, and ITOCHU Techno-Solutions Corporation in Japan to capture captive markets. As a result of the growth strategy, MegazoneCloud, along with its affiliates and subsidiaries, is expected to post revenue exceeding USD 500M in 2020.

As the market conceives that accelerating digital transformation will provide enormous opportunities, MegazoneCloud is known to be already in talks with global investors for Series C and gearing up for IPO targeting 2023.

About MegazoneCloud

MegazoneCloud is a cloud MSP which was established after being spun off from Megazone. In 2019, MegazoneCloud, along with its subsidiaries and affiliates, recorded 4,200 billion won in revenue, serving more than 3,000 companies.