Data security startup Druva's valuation doubles to $2 bn on raising $147 mn

The firm counts US space agency NASA and drugmaker Pfizer among its customers; it had become a unicorn last June

Druva, a data-protection startup that counts US space agency NASA and drugmaker Pfizer among its customers, has received $147 million investment as it rapidly scales in response to accelerated demand for its platform. The fundraise was led by Caisse de dépôt et placement du Québec (CDPQ), a global investment group, with a significant investment by Neuberger Berman, each of which manage more than $300 billion in net assets. The round has increased the Pune and California-based company’s valuation above $2 billion. The financing round also included participation from existing investors Viking Global Investors and Atreides Management.

“The unprecedented events of 2020 have ushered in a generational cloud transformation for businesses, and data’s increasing value is at the very heart of it,” said Jaspreet Singh, co-founder and CEO, Druva. He said Druva pioneered the cloud data protection category almost a decade ago. This has led the way in defining the architecture, business model, and user experience our customers now expect. “This investment and our continued, rapid growth is further validation of our vision for a simple, open, and unified data protection and management platform,” said Singh.

Last June, Druva raised a $130 million investment led by Viking Global Investors, which made the company a ‘unicorn,’ or a startup valued at more than $1 billion.

Organizations are quickly moving workloads to cloud environments, adopt SaaS (software-as-a-service) solutions, and combat rising cyber threats. This new investment will fuel the continued expansion of the Druva Cloud Platform to meet today’s unprecedented needs. It would also help extend the company’s industry leadership as it makes efforts for data protection.

Over the last 12 months, enterprises have moved swiftly to adopt cloud solutions to strengthen business resilience. They are also doing it to maintain critical business operations, and support hybrid work models.

Based on this demand, Gartner, Inc. forecasts cloud adoption will reach a five-year compound annual growth rate (CAGR) of 20.7 per cent. As data grows exponentially in parallel to this new operating model, traditional data protection based on hardware and software is no longer scalable or cost-effective. Instead, businesses need a new approach that can be deployed from anywhere, protect data across the enterprise, and deliver it securely as a service. Only solutions built natively in the cloud will be able to successfully deliver all this functionality. About 40 per cent of organizations will supplement or completely replace traditional backup applications with cloud-based solutions by 2022, according to Gartner, Inc.

“Rising volumes of stored data, rapid adoption of cloud and deployment of SaaS applications, regulatory frameworks and cybersecurity concerns have accelerated the demand for data protection and management solutions for businesses,” said Alexandre Synnett, executive vice president and chief technology officer, CDPQ. “The working-from-home dynamic experienced globally has further accentuated the need for cloud-based data protection solutions. We believe Druva is in an excellent position to seize opportunities and enhance its clients’ agility and data compliance.”

Druva said it has the ability to deliver faster time to value and help businesses manage, protect, and govern critical data during their digital transformation efforts. Druva Cloud Platform’s customer base has expanded substantially during 2020. Also, the adoption of multiple Druva Cloud Platform products has increased by 50 per cent in the same time period. In the last year, the company’s data under management has grown by more than 40 per cent. Druva supports top organisations including GameStop, Marriott, NASA, National Cancer Institute, Pfizer, and Regeneron Pharmaceuticals.

“We believe we are in the early innings of enterprises shifting workloads to the cloud, and Druva’s proprietary solutions position the company for long- term success,” said Charles Kantor, managing director, Neuberger Berman. “We look forward to providing our experienced market perspectives to management as Druva marks this important inflection point in its growth trajectory.”

Phil Goodwin, Research Director, IDC said the last 12 months have underscored how organisational agility is at a premium, and IT leaders are increasingly turning to cloud technologies to increase business resilience and velocity. “Companies able to simplify complex data protection processes, particularly by leveraging the cloud, can gain strategic advantage through better data availability,” said Goodwin. “Druva Cloud Platform is architected to make it a compelling choice for organizations navigating cloud migrations.”