Ericsson Partners with LotusFlare, Acquires Minority Stake to Expand Network API Monetization

ERIC
December 03, 2025

Ericsson announced a strategic partnership with LotusFlare, a Santa Clara‑based software company founded in 2014 that employs roughly 500 people and builds cloud‑native commerce and monetization solutions for the telecommunications industry. The deal includes Ericsson acquiring a minority stake in LotusFlare, though the financial terms of the transaction were not disclosed.

The partnership will jointly develop a Network API Exposure Layer that allows carriers to expose and monetize advanced network capabilities through APIs. By combining Ericsson’s programmable network technology with LotusFlare’s consent‑management and digital‑commerce platform (DNO Cloud), the alliance aims to accelerate the adoption of network APIs and unlock new revenue streams for communication service providers.

Ericsson’s move strengthens its position in the programmable‑network market and expands its ecosystem of API‑enabled services. The collaboration complements Ericsson’s existing initiatives, such as the Aduna joint venture that became operational in September 2024, and positions the company to capture a larger share of the emerging API‑driven connectivity economy.

The partnership also supports Ericsson’s broader strategy to accelerate 5G‑standalone and edge‑AI workloads. By providing a standardized API layer, carriers can more quickly integrate network functions into cloud‑native applications, reducing time‑to‑market for new services and creating opportunities for monetization through usage‑based billing.

LotusFlare’s DNO Cloud platform is a cloud‑native, AI‑powered digital commerce and monetization platform that simplifies technology stacks for CSPs and enables rapid innovation. The company has raised $10 million across three funding rounds, including a seed round in 2014 and a Series A in 2018, and now benefits from Ericsson’s investment and partnership to scale its go‑to‑market capabilities.

Ericsson’s Q3 2025 financial results, which saw net sales of 56.239 billion SEK and a net income of 11.3 billion SEK, demonstrate the company’s strong financial footing and provide the resources to pursue strategic investments such as this partnership. The partnership is expected to contribute to Ericsson’s long‑term growth by expanding its API ecosystem and creating new monetization channels for carriers.

Niklas Heuveldop, Senior Vice President of Ericsson’s Global Communications Platform, said the collaboration “will accelerate CSPs’ ability to unlock new network capabilities and create new revenue streams.” CEO Sam Gadodia of LotusFlare added that Ericsson’s investment “validates our product innovation and will accelerate the development of critical network asset monetization capabilities for CSPs worldwide.”

The deal is part of a broader industry trend toward API monetization, as telecom operators seek to transform legacy connectivity into programmable services. Ericsson’s partnership with LotusFlare positions it at the forefront of this shift, reinforcing its competitive advantage in the programmable‑network market.

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