Massachusetts IoT connectivity firm Blues has announced an $8m follow-on funding round.

This was led by existing investor XYZ Venture Capital, and follows on the heels of its previous $25m raise led by Sequoia Capital in May 2025.

This latest fundraise was driven by increased investor demand after the prior round was oversubscribed, prompting the company to accelerate the timing of this next phase of capital investment. The additional capital comes at a pivotal moment for Blues, as rapid customer adoption and growing demand signal clear market need for its connectivity.

The funding will be used to support the company’s growth, fuel product innovation, and enable Blues to deliver on its mission to help the world’s physical product makers transform their offerings into data-driven intelligent services.

“We had more investor demand than we could accommodate in our last round, making it clear there was an opportunity to move faster,” said Ian Small, CEO of Blues. “IoT adoption is accelerating across industries, from refrigeration manufacturers, logistics providers, to automotive battery vendors. For product makers of all kinds, Blues simplifies secure, seamless cloud-connectivity for physical products. This is the ideal time to expand our reach, capitalise on our unique offering, and help our customers deploy intelligent services to generate new revenue streams.”

Blues makes it easier and more affordable to derive actionable insights from physical products, accelerating the time to market for revenue-generating services that bring product makers into the intelligent era. Blues is driving a long-overdue platform shift by putting these capabilities within reach of every product maker, not just those with big R&D budgets.

“I founded Blues because of my deeply held belief that there’s tremendous opportunity in helping every physical product become connected and intelligent,” said Ray Ozzie, executive chair of Blues. “It’s exciting to see our customers transform their own customers’ experience with new, intelligent services, all made possible by Blues’ tapping the data that lie within their physical products.”

Ross Fubini, managing partner at XYZ Venture Capital (xyz.vc), added: “We’ve been big believers in Ray Ozzie’s vision and in Blues’ technology for years. Watching customer trials start to turn the corner into scaled production rollouts convinced us that this was the right moment to boost our investment in Blues and support the company’s increased go-to-market focus.”

With $99m in funding to date and growing adoption across new and existing customers, Blues (blues.com) says it is leading the charge in solving the toughest problems in IoT connectivity. Blues has customers across transportation, healthcare, energy and logistics in North America, Central America and Europe.