Edge computing startup Ditto has raised $82 million in a Series B round of funding, more than doubling its valuation to $462 million. The San Francisco-based company is on a mission to bring "resilient" connectivity to edge devices, reducing latency and optimizing bandwidth requirements by processing data closer to where it's generated.

In the context of Ditto's industry, "edge" refers to a distributed computing model that brings data processing and storage closer to the source, rather than relying on centralized data centers and cloud platforms. This approach is particularly vital in the age of AI and computationally intensive machine learning models, where real-time decisions are paramount, or in situations where connectivity is patchy.

Ditto's solution bypasses physical edge servers, which CEO and co-founder Adam Fish describes as a costly, labor-intensive endeavor that customers can do without. Instead, the company uses the hardware that companies' deskless workforce already use, such as smartphones in their pockets. "We replace hardware with software – a no-brainer choice," Fish added.

Founded in 2018, Ditto has already amassed an impressive roster of customers, including the U.S. Air Force, which inked a $950 million contract with the company back in 2022. In the past year, Ditto says its customer count has doubled to more than 30, while its annual recurring revenue (ARR) has grown by 250%, although the company declined to divulge specific numbers.

Ditto's platform constitutes the core "edge sync" component, which is an embeddable software development kit (SDK) that device-makers integrate with their application. This allows companies to tap into devices' built-in Bluetooth, Wi-Fi, or local LAN capabilities to create "ad-hoc mesh networks," whereby apps can discover and communicate with each other independently of any centralized cloud. Ditto serves as a mobile database that apps read and write to locally.

The company's approach has led to several major airlines, including Delta, Japan Airlines, and Lufthansa, adopting its technology. For instance, Delta has built a mobile app for its flight attendants that integrates Ditto's SDK, allowing them to chat with each other from anywhere in the cabin, making it easy to collaborate with team members consistently during the flight and provide the best customer experience.

While Ditto's focus is on edge computing, the company acknowledges the power of modern cloud computing and the need for certain functions to be performed in the cloud. To bridge this gap, Ditto allows developers to store and sync data "peer-to-peer" (P2P) across all their systems while remaining entirely synchronized with data stored elsewhere. The company offers distinct pricing for customers that only want to sync between the cloud and their edge devices, without the mesh networking element.

With the fresh $82 million in funding, Ditto plans to grow its team and scale its core product, including forging partnerships with cloud database vendors. The company has already partnered with database giant MongoDB, launching the MongoDB Connector to synchronize data between edge devices and MongoDB databases.

As AI continues to encroach deeper into the fabric of society, edge computing is poised to come into its own, given the demand for real-time data processing and low latency. "There are massive tailwinds to edge computing, especially with the rise of AI," Fish said. "Running models at the edge not only adds resiliency, but improves privacy and lowers costs too. Our vision with Ditto is it becomes the de facto company and platform you turn to when thinking about 'edge'."

Ditto's Series B round was led by Top Tier Capital Partners and Acrew Capital, with participation from Advance Venture Partners, Amity Ventures, Friends and Family Capital, Fundrise, Innovative Technology Fund (USIT), Internet Initiative Japan (IIJ), and True Ventures.