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Home >Companies >Start-ups >Druva raises $130 million in funding round led by Viking, enters unicorn club

Sequoia Capital-backed software-as-a-service (SaaS) company Druva Inc., which offers cloud data protection and management, has raised $130 million in a new round led by Viking Global Investors, which valued the company at over $1 billion.

With the latest capital infusion, the total capital raised by Druva stands at $328 million. It had raised $80 million in 2017 in a funding round led by Riverwood Capital.

Built on Amazon Web Services, Druva’s technology delivers all-in-one backup, disaster recovery, archival and analytics solutions that deploy in a single click and provide 360-degree visibility and control across all environments. Druva’s clients include 10% of Fortune 500 companies, such as Pfizer, Flex, Marriott, Live Nation and Hitachi.

The new round also witnessed participation from new investors, such as Neuberger Berman and Atreides Management, as well as existing investors, including Riverwood Capital, Tenaya Capital and Nexus Venture Partners.

“We are at an interesting time in the market. The data management market is forecast to be worth $55 billion next year, yet the landscape is dominated by solutions that are 20 years old. The data protection management market is growing and shifting in favour of cloud. Lots more data that needs to be protected, there are new regulations, new government laws," said Jaspreet Singh, founder and chief executive officer, Druva, adding that the company’s primary cloud business is growing 50% year-on-year.

The capital raised will be used to invest in innovation, as well as for strategic acquisitions, said Singh. “The fundraise is entirely primary capital. We have plenty of capital to innovate and to selectively look at acquisitions, mostly tech acquisitions, and we will also use some capital for marketing."

Singh added that Druva’s efforts in innovation will focus on new workloads that enterprises are deploying, which need protection, and adding more value on data that will suit their needs of business intelligence, better governance and security.

Having raised late-stage financing from a typical public market investor like Viking, Druva is likely to go for an initial public offering (IPO) in the next 12-18 months.

“An IPO is the most logical outcome at this point in time. Of course, we need to have a certain scale and we need to time the market. There is a potential of that (IPO) next year. 12 to 18 months is a likely window," he added.

Singh expects the company to hit an annual revenue run rate of $100 million in the next couple of quarters. Druva’s revenue is dominated by US-based companies. It is targeting to generate 25% of its revenue from Asia and Europe this year.

“Since our original investment around two years ago, the company’s growth and success has surpassed our expectations. Druva’s unique approach to the large and growing data protection market is transformative to the industry and is validated by some of the world’s largest companies and the most demanding customers," said Harish Belur, managing director, Riverwood Capital.

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