Storage Startup Scality Closes $45 Million Series D Funding With Sights on 2017 IPO

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This article originally appeared at The WHIR

Object-based storage startup Scality has completed a $45 million Series D funding round, bringing the total investment in Scality to $80 million.

In its announcement, Scality said it will use the funds to continue to increase its North American salesforce, continue to expand internationally and actively support its resellers. The company said this will position itself for an initial public offering in 2017.

Scality’s last round of funding was in July 2013, when it raised $22 million. Since then, Scality has increased its revenue four-fold, grew its staff from 42 to 160, and announced major customers Deluxe, RTL II, and Phoenix.

Scality’s primary product, Scality RING, is storage software that enables customers to build petabyte-scale storage infrastructures using industry-standard x86 servers, regardless of the vendor. It abstracts the underlying hardware to create a single pool of storage.

More than half of the server market now resells Scality RING software thanks to reseller agreements with HP, Dell and other server manufacturers.

Scality RING is used for a variety of capacity-driven workloads such as cloud services, video, and enterprise archiving. For instance, Libero, Italy’s largest email provider, deployed an email storage solution using Scality RING on Dell servers in 2011. And 7 of the top 20 telecommunications companies use Scality RING for mission critical applications.

Scality is based in San Francisco, but has a large international userbase. Scality significantly expanded its European and Asia Pacific presence in 2014. It opened a Japanese subsidiary, Scality KK, in March of this year to address the company’s growing Japanese customer base, and opened another office in Singapore.

“Based on our extensive 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,” stated Ashish Nadkarni, Research Director at IDC. “Scality is unique in how its solution blends the file and object technologies that are required to bridge new and existing customer needs. This new funding round is further validation of Scality’s strength in the market and strong value proposition.”

The latest investment round saw new investor BroadBand Tower, Inc., joining existing investors Menlo Ventures, IDInvest, the Digital Ambition Fund, Iris Capital, and Omnes Capital and Galileo Partners. The Series D funding round was completed with participation from 65 percent of Scality’s employees, who will have an equity stake in the company they’re growing.

This first ran at http://www.thewhir.com/web-hosting-news/storage-startup-scality-closes-45-million-series-d-funding-with-sights-on-2017-ipo