San Francisco: California-based application performance management solution provider AppDynamics has secured $20 million in series C round of funding led by Kleiner Perkincs Caufield & Byers (KPCB). The financing also saw the participation of existing and founding investors Greylock Partners and Lightspeed Venture Partners. The funds would be used to fuel the company’s growth and continue expansion of the engineering and sales teams to enable product enhancements and aggressive new customer acquisition. Previously the company had raised $11 million in series B round and $5.5 million in series A from Lightspeed Venture Partners and Greylock Partners.

“Modern applications are no longer monolithic in nature but are highly distributed and dynamic, fueled by architectural trends such as Cloud, SOA, Big Data and Agile Development. As a result, traditional application performance management solutions have become obsolete. We are leading the charge in next-generation management technology to address this generational shift in web architectures,” says Jyoti Bansal, Founder & CEO, AppDynamics.

The company provides Software-as-Service (SaaS) and on-premise application performance management for modern application architectures in both the cloud and the data center. Its portfolio customers include Netflix, The Priceline Group of Companies, ZipRealty, Karavel.com, FOX News Channel, Cornell University, Taleo, Intuit, Conexus, AAA Northern California, Staples, Fresh Direct, Care.com, Swisscom, and many others. Bansal feels that most of the companies they sell to don’t have an existing Application Performance Management (APM) solution. He also feels that as these applications become more critical; going without APM would not be possible for companies.

According to Matt Murphy, Lead Investor, Kleiner Perkins Cauflied & Byers, “Applications are moving to distributed, cloud-based architectures, a sea change that is already having a tremendous impact on the Operations and Development teams responsible for performance and uptime. AppDynamics’ phenomenal growth and success to date proves that they’re well positioned to take advantage of this transformation and help companies manage these new types of business-critical applications."

AppDynamics, which was founded in 2008 by Bansal has a market size of over $2 billion and has about 90 employees of now. Bansal previously led the design and architecture at Wily Technology. He was also the Senior Engineer at Datasweep (which was acquired by Rockwell Automation) and netLens (which got acquired by Microsoft through FAST/Nextpage). He pursued his B.S. in Computer Science from Indian Institute of Technology (IIT) Delhi. He is also the lead inventor on 14 U.S. patent applications in the field of distributes applications management.

Kleiner Perkins Caufield & Byers is a venture firm which invests across all stages of new ventures: seed, early-stage, and growth-stage. Their focus sectors include digital, greentech, and lifesciences. Since its inception in 1972, the firm has backed over 600 ventures, few of which include AOL, Amazon.com, Citrix, Compaq Computer, Electronics Art, Genetecg, Genomic Helath, Google, Intuit, Juniper Networks, Netscape, Lotus, Sun Microsystems, Symantec, Verisign, and Xilinx. It has offices in Menlo Park, Beijing, and Shanghai.