According to sources familiar with the matter at hand, European software startup Infobip has raised more than $200 million from One Equity Partners, a private equity fund, in a series A funding round which values the company at more than $1 billion.

The startup aims to channelize the additional funds to expand its footprint in the U.S. through potential acquisitions, as it raises the heat on rivals, including San Francisco-based Twilio.

Founded in 2006, Infobip provides technology through multi-channel marketing allowing companies to communicate with customers through text messages or third-party apps including WhatsApp.

Infobip, which counts global companies such as Unilever, Uber, and Costco as its customers, has the ability to reach seven billion mobile devices in more than 190 countries through its network, said the company.

According to sources, the company, which is already in black, has generated $710 million in revenues in 2019, up by 38% from the previous year, said sources.

In April 2020, it saw a 20% jump in SMS volumes in comparison to February, with businesses looking to reach more customers during a global lockdown induced by the Wuhan Coronavirus.

Infobip will now focus on expanding its footprint and is also weighing options which include an initial public offering in the United States at a later date, said a source.

According to market research firm International Data Corporation (IDC), Communication Platforms as a Service, (CPaaS), is slated to grow from $3.3 billion in 2018 to $17.2 billion by 2023.

Citi and Morrison Foerster advised Infobip in raising the funds.