Nasuni secures $60 million growth capital investment from Sixth Street to expand file data services market leadership
Company Continues Rapid Growth as Market Faces Massive Data Growth, Cloud Adoption and Ransomware Threats
BOSTON, March 24, 2022 /PRNewswire/ — Nasuni Companythe leader in file data services, today announced a $60 million equity investment by new investor Sixth Street Growth, the growth investment platform of global investment firm Sixth Street, who will also join Nasuni’s board. The valuation reflects a significant increase from the company’s previous fundraising round which closed 18 months ago. This rapid expansion responds to accelerating demand for its file data platform and as organizations rapidly move workloads to cloud environments to reap the benefits of increased scale, greater economics, and increased security in the face of increasingly intense cyber threats.
This is the fourth round of funding Nasuni has raised in the past five years, in which they have raised a total of $148 million. With this funding, Nasuni now has approximately $100 million in cash on its balance sheet. The new investment will be used to fuel the continued growth and expansion of Nasuni’s file data services as the company invests in innovation, international expansion and potential strategic acquisitions.
“The unprecedented events of the past 24 months have accelerated the generational transformation of cloud for business and the growing value of data,” said Paul Flaganan, Managing Director, Nasuni. “Cybersecurity threats like ransomware are forcing businesses to think differently about their data infrastructure. Nasuni pioneered the cloud-based file data services category nearly a decade ago and led the way to defining the architecture, business model and user experience. This investment and our continued and rapid growth validates our vision.”
Enterprises are aggressively adopting cloud solutions to build cyber resilience, support hybrid work models, and achieve frictionless scaling to meet business needs. Based on this demand, IDC predicts that adoption of cloud file services will grow at a compound annual growth rate (CAGR) of 40% over five years and will be a $14 billion market by 2025. This growth rate for file data is greater than both the block and object storage markets.
“Nasuni provides its customers with excellent products, with highly effective solutions to meet the urgent needs for efficient cloud storage and data protection,” said Michael McGinn, partner and co-head of Sixth Street Growth. “Nasuni is poised to accelerate its already impressive organic growth through international expansion and the development of new features and capabilities while continuing to be a market leader in file data services.
As data grows exponentially alongside the new cloud operating model, traditional data storage and hardware-based data protection are no longer scalable, secure, or cost-effective. Instead, businesses need a new approach that can be deployed from anywhere, have unlimited scale, protect data across the enterprise, and deliver it securely as a cloud service. Only solutions built natively in the cloud will be able to successfully address all of this.
Funding comes as Nasuni announced record results from the end of its financial year December 31, 2021. The company has seen significant year-over-year (YoY) growth in annual recurring revenue (ARR), a continued increase in customer wins worldwide, and a rapidly growing number of customers paying Nasuni more than $1 million in annual contract value. Nasuni has also seen exceptional traction in its partner ecosystem.
Nasuni provides modern cloud file services, powered by the world’s only cloud-native global file system. Nasuni is a cloud replacement for traditional network attached storage (NAS) and file server silos, consolidating file data into easily expandable cloud object storage at a fraction of the cost. Nasuni also eliminates the need for complex legacy file backup and disaster recovery infrastructure, greatly simplifying IT administration. Businesses and organizations around the world trust Nasuni to easily access and share files globally from the office, home, or on the road. Industries served by Nasuni include manufacturing, construction, creative services, technology, pharmaceuticals, consumer goods, oil and gas, financial services and public sector agencies. Nasuni’s head office is based in Boston, MA, USA providing service in over 70 countries worldwide. For more information, visit www.nasuni.com.
About Sixth Street
Sixth Street is a leading global investment firm with over $60 billion in assets under management and capital employed. Sixth Street Growth is the company’s dedicated platform for making private investments in growing businesses. The Sixth Street Growth team partners with businesses and management teams to provide tailored capital solutions to accelerate organic and inorganic growth. Sixth Street has invested over $5 billion in more than 40 companies as part of its growth investment strategy since its inception. Some Sixth Street Growth investments include Airbnb, AvidXchange, Bloomreach, Daavant, Gainsight, Heap, MDLIVE, Spotify, SnapLogic and Sprinklr. For more information, visit www.sixthstreetgrowth.com.
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