Scality, a provider of software-based storage, said it will utilize its $45 million Series D funding completed today for global expansion of its storage business.
New investor BroadBand Tower (BBTower), all existing investors, led by Menlo Ventures, and 65 percent of the Scality staff, participated in this round bringing the total investment in Scality to $80 million. Scality will use the funds to increase its salesforce in North America, to expand internationally and support its resellers.
Jerome Lecat, CEO of Scality, said: “The last funding round was done at 2x valuation speaks volumes about the overall confidence in the future of Scality. This new capital investment will allow us to boost our go-to-market, attract strategic new hires, continue to expand globally, and be primed for an IPO by 2017.”
Since its last round of funding in July 2013, Scality has increased its revenue by 400 percent, grew its staff from 42 to 160, announced customers, including most recently Deluxe, RTL II, and Phoenix, and signed distribution deals.
Some of the recent announcements include the signing of a resale agreement with HP in October 2014, with Dell last week, as well as other deals with server manufacturers. The company claims that more than 50 percent of the server market is reselling Scality RING software.
In March, Scality announced a distribution partnership with BroadBand Tower, as the first Cloud Solutions Partner in Japan. Scality will build a Japanese support desk and QA team to provide support as well as build an entity with sales, system engineering and marketing departments.
“Based on our analysis, Scality is a leader in object-based storage – a market that represents $21.6 billion in 2015, and is growing 21.5 percent annually. This new funding round is further validation of Scality’s strength in the market and strong value proposition,” said Ashish Nadkarni, research director at IDC.