Tegile Closes $70 Million Funding Round

Total capital raised to $117.5 million to date, SanDisk and WD among investors
This is a Press Release edited by on 2015.05.29

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Tegile Systems, Inc. has closed a $70 million Series D funding round. The new funding brings the company's total capital raised to $117.5 million to date, and will be used to finance its global expansion and address the opportunity within the enterprise flash storage market space.

Three new investors, Capricorn Investment Group, Cross Creek Advisors and Pine River Capital Management, join existing investors August Capital, Meritech Capital Partners, Western Digital Corp. and SanDisk Corp. to fund the round.

"With a best-in-class product portfolio, an award-winning partner program, and numerous industry accolades, Tegile continues to set the bar for up-and-coming storage vendors," said Dipender Saluja, MD, Capricorn Investment Group. "Tegile is transforming the storage industry by offering unique storage solutions that strike the perfect balance between performance and economics. The opportunity to partner with Tegile and help scale the company as it continues its rapid ascent in the flash storage industry is one that we simply could not afford to pass up."

Tegile provides flash-optimized storage solutions that enable businesses of all sizes to accelerate their applications, reduce their storage footprint and cut operational costs. Tegile shipped its first storage array in 2012. Since then, the company has deployed more than 1,500 systems within mid-sized and large enterprise environments and has experienced year-over-year revenue growth of 350%.

"The enterprise flash storage market is rapidly evolving and there are a number of companies vying for leadership position," said Rohit Kshetrapal, CEO, Tegile. "I truly believe that we have built something unique in the marketplace. Our flash storage solutions deliver the performance, flexibility, and economics that companies need to achieve new levels of business acceleration while controlling IT costs. With this infusion of venture and debt capital, we will be able to satisfy the rising demand for our Tegile Intelligent Flash Arrays and methodically build Tegile into a sustainable multi-billion-dollar business that will deliver maximum value to our investors."

In the next 18 months, Tegile plans to double the number of employees from its current base of 300, scale up its operations, and further expand its reseller channel to satisfy the rising demand in Europe and Asia. In North America, the company will continue to ramp its sales teams to meet the needs of enterprise and federal government customers.

"I've seen what Tegile's team is capable of, and couldn't be more pleased with the technical and management direction of the company," said Vivek Mehra, general partner, August Capital, which was Tegile's first investor. "Tegile's foundation of performance and value is enabling broader adoption of flash storage in business IT, and delivering benefits for big segments of the market that have not typically been served well by other storage vendors."

"Tegile solved a mission-critical need for a hybrid FC boot and virtualization storage system for our newly deployed MLB Network post-production system. The technology exceeded our performance needs and enabled more workflows than originally anticipated, given the flexibility of the software and performance of the system," said Tab Butler, MLB Network. "Tegile's technology allows us to provide our users a low latency, HA OS environment while simultaneously fulfilling our high-performance virtualization needs. It is a cost-effective solution that allows us to improve our operations while ensuring data integrity."

Our Comments

Born in 2009, Tegile got a total of $117.5 million in financial funding following four rounds:

  • $2.5 million in 2010
  • $10 million in 2012
  • $35 million in 2013
  • $70 million in 2015

$70 million is highest amount for a financial funding in 2015 after $175 million for SimpliVity and $150 million for Infinidat. There were 16 rounds recorded this year for storage start-ups, a relative small number at this time of the year. 55 were registered in 2014.

Among the investors into Tegile, we note storage companies SanDisk and WD to get SSDs with the start-up's goal to add PCIe and 3D/TLC flash devices. SanDisk also invested in Nexenta (software-defined storage), Panzura (cloud as a storage tier integrated into interwoven global file system and global namespace) and Stratoscale (hyper convergence virtualization compute and storage software), and WD in EverSpin Technologies (MRAM).

Fast growing Tegile is involved in one of current hottest storage business, hybrid and all-flash arrays, but now with more than 50 competitors. It is especially focusing on NetApp customers having difficulties to move to Clustered Data ONTAP, delivering multi-protocol 2U all-flash arrays up to 48TB without inline de-dupe for primary storage.

The company is headquartered in Newark, CA, with offices in New York, NY, London, UK, Benelux, and Whitefield, Bangalore, India for R&D.

Tegile plans an IPO in one to two years like rival Nimble Storage did it in 2013 after raising $98.7 million.