Cloud backup vendor snags new $130 million in fresh funding, earning billion-dollar-plus valuation
Flying high on the ongoing demand for protection and recovery services, Druva took in a new nine-figure round of funding. The cash infusion propelled the cloud data protection vendor into the unicorn club of startups with valuations of more than $1 billion. Additionally, the company is reportedly buying CloudLanes, a start-up provider of data management and protection technology.
The Lowdown: Druva, which is revamping its channel program to increase its indirect sales, is now generating more than $100 million and is looking at an initial public offering in the next 12 to 18 months, the company said in an interview with TechCrunch. The expanding run-rate and ongoing demand for enterprise cloud-based backup services are what attracted new investors to pump $130 million into the company. The new investment brings the total amount raised by Druva since its April 2010 launch to $328 million, according to CrunchBase.
The Details: While Druva gave no specifics of its strategic plans for the new funding, management is signaling intentions to expand into new areas. Druva used a chunk of new money to acquire CloudLanes, a company previously backed by Microsoft, for an undisclosed amount. CloudLanes provides management and data protection tools that safeguard data against corruption and improve recovery. The company is also looking at expanding into business intelligence and analytics to make use of the Internet of Things data being stored in the cloud.
The Impact: Druva is one of several companies competing in the crowded Backup-as-a-Service market, which is projected to top $8 billion annually by 2020. It’s bumping up against other providers, including Commvault and Rubrik in the enterprise market. Equally, it’s vying for attention among partners and customers with a long list of backup providers ranging from Datto to StorageCraft to Veeam. The new funding will go a long way toward helping Druva garner more attention, partners, customers, and market share.
The Buzz: “The line between data and business is blurring. The data management market is forecasted to be worth $55 billion next year, yet the landscape is dominated by solutions that are 20 years old. Druva is disrupting the way enterprises protect and leverage their data with a modern, cloud-native SaaS platform,” said Druva CEO Jaspreet Singh. “Today’s funding will help Druva to power data protection for the cloud era, and accelerate our momentum to better serve the needs of enterprise customers.”
“The challenges of data management continue to grow as enterprise data becomes more distributed across hosted SaaS, branch offices, public clouds, and endpoints, as well as the traditional data center,” said Steven Hill, senior analyst at 451 Research. “Hybrid IT is rapidly becoming the norm, and companies like Druva that focus on reducing complexity, protecting data, and managing information regardless of a physical location can offer strategic advantages over those that are not as evolved.”
“As Druva’s first investor, Sequoia India saw great potential in Jaspreet and the transformative nature of the product the Druva team was building,” said Shailendra Singh, managing director of Sequoia Capital (India) Singapore. “Druva’s product capabilities and market adoption have continued to surprise us ever since. We remain excited about Druva’s cloud-native architecture for enterprise data protection at scale and believe it will be a category-defining company for data protection in the cloud era.”