WSO2 today announced that it has closed a $20 million funding round led by Pacific Controls, a global provider of Internet of Things (IoT) and machine-to-machine (M2M) solutions, and joined by Toba Capital. The investment comes in the wake of increasing demand for WSO2’s comprehensive, open source middleware platform for building, integrating, managing, securing and analyzing companies’ APIs, applications, and Web services—on-premises, in the cloud, on mobile and IoT devices.

WSO2, which celebrated its 10-year anniversary this month, now has 2.2 trillion customer transactions per year running through the company’s award-winning cloud and enterprise middleware. The growth comes as more enterprises worldwide rely on WSO2 to achieve greater agility and fast-track their innovation. WSO2 ranked 211 on Deloitte’s Technology Fast 500™ for 2014.

“Ten years ago, we saw that the rapid business and IT changes facing enterprises would be best supported by redefining middleware as an open modular platform that could be implemented, expanded and modified just as quickly. The agility of our customers and our company to adapt to new opportunities—such as those powered by APIs, mobile, IoT and the cloud—have led to strong revenues and customer adoption worldwide, validating our vision,” said Dr. Sanjiva Weerawarana, WSO2 founder, CEO and chief architect. “With the investment by Pacific Controls and Toba Capital, both leaders in cultivating technology innovation, we can now strategically accelerate our ability to deliver on this vision.”

WSO2 will use the growth financing to advance the worldwide delivery of next-generation middleware solutions that address new business and IT models fueled by APIs, IoT, mobile computing, and the cloud. Notably, WSO2 API Manager subscriptions continue to more than double each year; cloud solutions now contribute to more than 15% of new revenue; and enterprises’ WSO2-powered IoT solutions extend across a range of industries—from transportation to automotive, manufacturing, construction, healthcare, communications, and smart cities. WSO2 also will use the financing to expand the company’s global operations; marketing, sales, and support teams; and channel programs.

With the investment, Dilip Rahulan, executive chairman of Pacific Controls, has joined the WSO2 board as an observer.

Pacific Controls’ investment in WSO2 further extends the strategic relationship between the two companies. Pacific Controls has standardized on the WSO2 platform to build the next generation of its industrial IoT cloud platform, which enables manufacturers to IoT-enable any device—elevators, escalators and fans to name a few—in order to transform themselves into data-driven providers of products as a service. Additionally, the two companies are working jointly on Pacific Controls’ smart city initiative.

“As a customer, we have experienced the unique advantage of WSO2’s comprehensive open source platform. Using WSO2’s modular middleware products, built from the ground up to work together seamlessly, we have been able to accelerate our solution delivery and address the broad range of demands required to connect IoT with enterprise systems,” said Dilip Rahulan, executive chairman of Pacific Controls. “Our own experience, coupled with the rapidly growing worldwide adoption of WSO2’s platform, made it clear that WSO2 has remarkable potential to reshape how enterprises adapt their applications and services to today’s demands. We are thrilled to invest in WSO2 and work with the company in building on its success.”

“WSO2 has an exciting team of proven entrepreneurs, who are delivering real value to global enterprises that demand an agile solution for their mission-critical applications,” said Vincent C. Smith, managing director of Toba Capital notes. “We continue to be impressed by the company’s ability to rapidly address new business and IT demands, which is translating into a strong increase in new customers and revenue streams. We are excited to extend our investment in WSO2, and we believe the company has tremendous potential for future growth.”