SAN FRANCISCO — Sensor Tower, which provides data on mobile app downloads and purchases, has raised a $45 million investment from private equity firm Riverwood Capital.
Sensor Tower previously raised a total of $1 million in seed investment and has been profitable since its founding in 2013. Sensor Tower says it achieved a record year for annual recurring revenue (ARR) in 2019, with 65% growth year-over-year. The company also increased its employee count by 50% over the previous year, and has opened several international offices to support regional demand, including its latest in London to serve the European, Middle East and Africa market.
“Sensor Tower not only supports an impressive range of enterprise-level customers such as Morgan Stanley, Zynga, and Tencent but also has equally impressive business fundamentals. As mobile becomes less driven by convenience and more of a daily necessity, we see Sensor Tower as becoming the platform the world relies on for mobile data. In addition, the company is led by visionary founders and a committed management team, who we are excited to partner with,” says Jeff Parks, co-founder and managing partner of Riverwood Capital.
Sensor Tower’s acceleration comes at a unique time in the mobile market: According to an eMarketer report, U.S. adults will, on average, spend three hours and 43 minutes on mobile devices per day, with 90% of that time spent in apps. With record downloads and revenue forecast through 2024 across mature and developing markets alike, reliable app data has become critical not only for mobile-first app developers, but also for major consumer brands and financial institutions. Through this partnership, Sensor Tower will focus on innovating and redefining mobile market intelligence.
“Sensor Tower data is becoming increasingly valuable to enterprises in multiple verticals, ranging from app-first, to app-ancillary and finance. The data that Sensor Tower provides will power marketing, sales, product, and research budgets in the future, offering great prospects for future growth,” noted Ramesh Venugopal, a member of Riverwood’s investment team.
“Coming from scrappy roots and minimal investment to be the company we are today, we’re excited to be partnering with Riverwood Capital,” said Alex Malafeev, co-founder and CEO of Sensor Tower. “We believe this new chapter will allow us to accelerate our growth, innovate, and develop comprehensive solutions for an ever-changing mobile ecosystem. Furthermore, we’re excited to partner with Jeff, Ramesh, and John from Riverwood on the next phase of our growth.”