According to the startup, it will use the newly raised funds to improve its DPU hardware and software solutions.
MangoBoost, a data processing units (DPU) developer, has raised $55 million in a Series A funding round. This brings its total raise, so far, to $65 million. Though it did not share its valuation, with the new funding, inside sources estimate that the company is now valued at around $300 million.
MangoBoost to Use Fund to Enhance DPU Solutions
According to the startup, it will use the newly raised funds to improve its DPU hardware and software solutions, which help businesses and data centres manage enormous amounts of data and optimize their workloads.
MangoBoost claims that its DPU solution encourages businesses and data centers to perform optimally whilst reducing power consumption. The startup also claims that its solutions help reduce costs and improve security.
However, even before the new fund, MangoBoost believes that its DPU already offers a performance that’s three times higher than what is obtainable with average solutions in the market. The startup also claims that its DPU is capable of reducing CPU usage by up to 95%. That is when it is used alongside Samsung’s Petabyte SSD storage system.
With its new fund, however, MangoBoost is set to use a major portion to bolster the development and operation of its various products. Some of them include its DPU hardware IP, DPU software, FPGA (Field Programmable Gate Array)-based DPU, ASIC (Application-specific integrated circuits)-based DPU, and many more.
The one-year-old startup will also commit the remaining part of the fund to recruiting new staff. While its workforce currently stands at 58, MangoBoost says it will use the remaining funds to double its workforce by the end of 2024.
Meanwhile, MangoBoost CEO Jangwoo Kim has hailed the efficiency of the firm’s DPU solutions thus far. Kim attributes this to the years of experience that the company gathered over nine years of research and development on how the DPU technology works for data centers.
Competition Heats Up
It might also be worth mentioning that competition is gradually gaining momentum in the DPU market. This is as big players in tech and semiconductor giants like Intel Corp (NASDAQ: INTC), Nvidia Corp (NASDAQ: NVDA), Amazon.com Inc (NASDAQ: AMZN), Microsoft Corp (NASDAQ: MSFT), and others have recently been investing in DPU vendors. The reason why these companies are joining the trend, however, is none other than to bolster their optimization technology for data center services.