Nile, a promising networking startup co-founded by former Cisco Systems executives John Chambers and Pankaj Patel, has successfully secured $175 million in a new funding round, Reuters news report said.
The funding was co-led by March Capital and Saudi Arabia’s sovereign wealth fund, Sanabil Investments. Additionally, corporate investors, including the venture capital arms of Saudi Telecom Company and Liberty Global, also participated in this round. This latest funding comes after Nile had previously raised $125 million, indicating strong investor confidence in the company’s potential.
Headquartered in San Jose, Nile specializes in providing network-as-a-service (NaaS) solutions, with a particular focus on secure wired and wireless products. The startup aims to present an alternative option for building corporate Wi-Fi networks, which has traditionally been dominated by industry giants such as Cisco, Juniper Networks, and Hewlett Packard Enterprise’s Aruba Wireless.
Nile’s network offerings have gained significant attention since their introduction last May, leading to the acquisition of prestigious customers such as Stanford University and startup Carta. The company’s chief executive, Pankaj Patel, highlighted Nile’s unique selling points, which include ease of use, lower costs, and advanced security features in its network architecture.
One of Nile’s key differentiators is its services-only approach, known as network-as-a-service (NaaS). By adopting this model, Nile aims to save its clients between 30 percent to 50 percent in costs at each location. This cost reduction is partly attributed to the consumption-based payment structure, which eliminates the need for upfront fees on equipment and minimizes expenses on maintenance, providing greater flexibility to users.
With the successful funding round, Nile plans to expand its operations further. The company intends to bolster its sales and marketing team to target mid-sized enterprises with employee counts ranging from 500 to 5,000. This strategic move indicates Nile’s ambition to grow its customer base and gain traction in the market by appealing to specific business segments.
As the competition in the networking industry continues to evolve, Nile’s innovative NaaS solutions and cost-saving approach have positioned the startup as a formidable challenger to established incumbents. With the backing of substantial funding and the expertise of its co-founders, Nile is poised to disrupt the corporate Wi-Fi landscape and carve a niche for itself in the dynamic networking market.
