We are pleased to announce our recent investment in Jotelulu, a fast-growing startup helping transform IT companies into cloud service providers. The €4 million Series A round was led by Adara, alongside Bankinter, Big Sur Ventures and G2A Investment Partners.
Founded in 2018 in Madrid, Spain, Jotelulu simplifies the entire process for IT service providers to manage and sell white-label cloud services to small and medium-sized enterprise (SME) customers.
While cloud services spending in Europe is expected to reach $148 billion in 2023, small and medium-sized enterprises (SMEs) are still an enormously underserved segment. More than 70% of European SMEs do not use any cloud services whatsoever.
While a majority of SMEs are outsourcing their other IT needs, it is still extremely difficult for small IT service providers to offer this customer segment cloud services. Implementation, ongoing customer support, and billing processes are notably complex, resulting in low profit margins for IT partners who attempt to resell cloud services from the large cloud infrastructure providers (AWS, Azure, etc).
We believe Jotelulu has cracked the code to reach this SME segment and has a unique opportunity to play a leading role in enabling the digitalization of European SMEs with a white-label solution for IT partners that covers the entire cloud service lifestyle.
Apart from a brilliant productization at the user interface level, the team has paid close attention to every technical choice to nail down their value proposition. This is reflected throughout the different elements of the platform, which are vertically integrated and designed with the end customer (SMEs) in mind – starting with the hardware choice and configuration and carrying throughout the network architecture all the way up to the application, service provisioning, and management layers.
On top of this, Jotelulu has developed different modules that enable IT partners to digitize their operations and better support their SME customers. Including but not limited to:
Over the past two years, Jotelulu has grown its partner network to more than 300 IT partners serving thousands of SMEs across Spain and Portugal.
Jotelulu plans to use this new funding to consolidate its leading position in the Iberian peninsula and accelerate its international expansion into France and other European countries.
Co-founder and CEO of Jotelulu, David Amorín, spent over ten years setting up and managing large international infrastructure projects until he founded his own IT Partner agency, Adder Solutions. Once he felt the pain of setting up cloud environments for SME clients, he embarked on a mission to help IT partners become cloud vendors (especially System Administrators) and started Jotelulu.
This foundation has helped Jotelulu establish a strong network of IT partners across all sectors, including ecommerce, retail, construction, consulting, energy, and more.
We believe Jotelulu is in a strong position to support European SMEs in their transition to cloud adoption by helping IT service providers across the continent effectively manage and market cloud services with exceptional support and higher profit margins. We look forward to working with the team during this next stage of growth.