$51 Million in Venture Funding for Druva

Total capital raised at $118 million
This is a Press Release edited by on 2016.09.29

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Druva, Inc. announced $51 million in funding that will drive the company's global objective to transform the way enterprises protect and manage information.

The new funding brings Druva's total capital raised to $118 million, and will continue to support its aggressive growth strategy. The round is led by existing investor Sequoia India and joined by new investors - Singapore-based EDBI Pte Ltd, as well as Blue Cloud Ventures and Hercules Capital.

This round also includes contributions from other existing investors including NTT Finance Corp., Nexus Venture Partners and Tenaya Capital.

The capital will be used to accelerate both product innovation and adoption, all while enhancing product capabilities across Druva's secure cloud platform. In addition, the capital will be used to further drive sales and marketing, and continue the company's global expansion.

"Our customers are entering a new era of public cloud adoption and Druva is at the forefront. The fragmentation of data, combined with increasing regulatory needs, is making enterprises everywhere rethink how information is best managed. In today's age, simple is genius, and Druva's 82 NPS speaks to how our cloud-first approach is simple yet disruptive," said Jaspreet Singh, Druva founder and CEO. "We are at an inflection point and Druva's ability to evolve and innovate is proving to be nothing short of a game changer. This new capital enables us to continue to serve customers through notable innovations, partnerships and additional global expansion."

Druva's cloud-first architecture offers a unified approach to data protection. Unlike the traditional approach of managing data silos like backup, DR and e-discovery, etc., with Druva, information is backed up once, and the platform enables advanced management and discovery analytics capabilities. This increases the availability and visibility of business critical information, while reducing the risk, cost, and complexity of managing and protecting it. The platform is built natively on public cloud platforms like AWS and Azure, and delivers scale and cost advantages, all while reducing the data risks inherent in today's fragmented data environment.

"Druva is at the cutting edge of leveraging the cloud to solve data protection challenges for today's enterprises. The team's ability to deliver multiple best-in-class solutions on common scalable architecture makes us very excited about what the future holds," said Shailendra Singh, MD, Sequoia Capital India Advisors. "It has been six years since Sequoia India's first series A investment. We are thrilled to continue to partner with Druva to build an enduring company."

"The risk of business data loss increases as workforce mobility becomes ubiquitous. Druva's superior solution to safeguard critical data through their unified cloud-native platform mitigates such risks whilst enhancing IT productivity and cost savings," said Swee-Yeok CHU, CEO and president, EDBI. "EDBI looks forward to supporting Druva as it expands into new markets in the region through Singapore."

This new funding round comes as Druva experiences strong growth and demand for its cloud-based data protection and information management solution. Over the last two years, Druva increased its global presence, growing to over 400 employees and expanding direct presence, launching subsidiaries in both Japan and Germany, while simultaneously growing its enterprise customer base by more than 1,000. New customers gained during the period included NASA, Chipotle, LiveNation, Hulu, Marriott, Leidos, NBC Universal, ServiceNow, Stanford University.

"Druva is embracing the potential of the cloud, enabling our enterprise to solve problems it once took several different solutions to solve - and at a compelling cost of ownership. We have seen Druva grow rapidly and it is clear they are setting the pace in the industry," said Scott Wiggins, group information technology, CIO, ANDRITZ, Inc.

Our Comments

- $51 million in series E for Druva in one of the highest financial round in 2016 in the storage industry. Needing more capital, it means that the Indian company, born in 2007, is probably not yet profitable despite a rapid expansion (six straight year of triple digit growth) thanks to its software Isinc and Phoenix for backup of laptops and smart devices for enterprises, shipped to 4,000 organizations with 25PB of data under management.

CEO Jaspreet Singh answers to our two questions:
1. When does Druva intend to be profitable? "Druva has been very cash efficient, we have built so far (before this round) with just over $60 million. Since we are operating in public cloud - we don't have high CAPEX costs as well. That said: we are investing back in growth and keep the revenue vs profit model tightly controlled. Recurring business helps us better control our destiny. If market conditions force, we can be profitable quickly - but fundamentally the goal is to leverage the investment, increase revenue base and keep a healthy cash-flow to re-invest into the growth."
2. Revenue range? "We don't provide revenues or the ranges, however, I can say that in this $30 billion market of data protection and management, we expect revenue to continue growing at the rate of 70-80% year-on-year."

In front of Druva, the records for storage companies on a total of 30 financial rounds this yearwere from these three firms, all of them headquartered in USA and also involved in backup:

  • - $77 million for Upthere in cloud personal storage
  • - $70 million for Zerto in hypervisor-based replication for enterprise
  • - $61 million by Rubrik in scale-out storage architecture for backup

Druva has now enough money from investors to consider an IPO in the future.

$118 million in total venture funding by Druva is far to be a record. More 14 start-ups got more than $200 million in the history of the storage industry, the winner being Cloudera, founded in 2008, with $1,041 million in five rounds, especially a huge $900 million one in 2014.