Ditto Secures $82M Investment to Seamlessly Sync Edge Data with the Cloud

Ditto, a pioneering company focused on enhancing resilient connectivity for edge devices, has successfully secured $82 million in a Series B funding round, bringing its post-money valuation to an impressive $462 million—more than double its Series A valuation from 2023.

Understanding Edge Computing

In the realm of Ditto’s operations, edge computing refers to a distributed computing model aimed at processing data closer to its source, such as IoT sensors, 5G routers, and smartphones. This approach minimizes latency and optimizes bandwidth by processing data locally or on dedicated edge servers located nearby, avoiding dependence on centralized data centers.

Importance of Low Latency in Modern Applications

As we delve deeper into the age of AI and advanced machine learning, the necessity for rapid data processing becomes critical, especially in scenarios where real-time decision-making is essential. Speed is crucial, particularly when dealing with unreliable connectivity.

Innovative Solutions from Ditto

Ditto’s approach eliminates the need for physical edge servers, a costly and labor-intensive process that their CEO, Adam Fish, believes customers can avoid. He explains:

“Imagine a local fast-food chain needing additional servers and Wi-Fi networks across all locations. When issues arise, on-site staff are often unequipped to resolve them, necessitating expensive technician availability. One customer described the situation as ‘whack-a-mole.’”

Instead, Ditto leverages existing hardware, such as smartphones, to enhance connectivity.

“We replace hardware with software—a straightforward choice,” Fish added.

Company Growth and Clientele

Founded in 2018 and based in San Francisco, Ditto raised $45 million in Series A funding in 2021 and an additional $9 million in a seed round the same year. The company has attracted a diverse portfolio of clients, including a notable $950 million contract with the U.S. Air Force in 2022. Over the past year, Ditto’s customer base has doubled to over 30 clients, with their annual recurring revenue (ARR) witnessing a remarkable 250% increase.

Edge Sync Technology

At the heart of Ditto’s offerings is their core edge sync component—a software development kit (SDK) that device manufacturers can embed in their applications. This technology utilizes built-in Bluetooth, Wi-Fi, or local LAN capabilities to establish ad-hoc mesh networks, allowing applications to communicate without relying on a centralized cloud server. Ditto functions as a mobile database, enabling local data reading and writing.

Key Clients in the Airline Industry

Ditto has successfully partnered with major airlines, including Delta, Japan Airlines, and Lufthansa. Fish highlights the necessity for constant crew collaboration, especially during flights, where cabin connectivity can often be unstable:

“This leads to disrupted communication among cabin crew, ultimately affecting customer experience.”

For instance, Delta has developed a mobile app for flight attendants that integrates Ditto’s SDK, facilitating seamless communication throughout the cabin.

Bridging Edge and Cloud Computing

While cloud computing remains crucial for specific tasks requiring extensive computational power, Ditto effectively bridges the gap between edge devices and cloud infrastructure. This allows developers to store and sync data peer-to-peer (P2P), ensuring consistency with centralized data storage.

Fish emphasizes the importance of creating a resilient software infrastructure, where operational efficiency is not hindered by bottlenecks or bandwidth limitations:

“The goal is to build an architecture that does not solely depend on the cloud, while still leveraging its capabilities for large-scale data integration.”

Future Plans and Industry Outlook

With the recent $82 million funding, Ditto aims to expand its team and enhance its core product, including forging partnerships with cloud database vendors. This builds upon their existing collaboration with MongoDB, which recently launched the MongoDB Connector for seamless data synchronization between edge devices and MongoDB databases.

As AI technology continues to evolve, the demand for edge computing solutions is expected to grow, especially given the need for real-time data processing and privacy concerns. Fish concludes:

“Edge computing is gaining momentum, particularly with the rise of AI. Our vision is for Ditto to become the go-to platform when considering edge solutions.”

Ditto’s Series B funding round was led by Top Tier Capital Partners and Acrew Capital, with participation from Advance Venture Partners, Amity Ventures, Fundrise, and others.