A B.C.-based tech startup is drawing the attention of Microsoft Corp.’s (Nasdaq: MSFT) venture capital arm, to the tune of $17 million.
LoginRadius, which specializes in managing multiple user IDs and passwords for online platforms, announced the series A funding July 25.
The financing round was led by ForgePoint Capital and Microsoft’s venture fund, M12, with participation from Real Ventures, BDC Capital and Yaletown Venture Partners.
“The market is massive and because of our unique position in the market we believe, and so do our new investors and existing investors, we can scale this company to $170 million in revenue over a period of five to seven years,” CEO Rakesh Soni told Business in Vancouver.
He said the capital injection is aimed at boosting the company’s global reach as well as investing in product innovation.
Clients range from those in the travel and hospitality industry to municipalities looking to help users with online identity management.
Soni said LoginRadius is able to manage both the frontend (user signups and logins) as well as the backend (password management) for clients.
“We basically takeover everything and manage everything,” he said.
About 60-70% of the business is coming from North America, with the remainder centred on Western Europe, Soni said.
The platform serves about 3,000 businesses with a monthly reach of 700 million users.
While the company was founded in Edmonton, it moved head offices to Vancouver in mid-2016 to tap into the city’s tech talent pool and stronger links to Silicon Valley, according to Soni.
Its headcount sits at about 70 people with plans to double within 12 months, while the research-and-development team is split 50-50 between Vancouver and India.
Representatives from ForgePoint Capital and M12 will join LoginRadius’ board as a result of the deal.