Cloud-based integration software company SnapLogic today announced a funding round of $40 million.
The San Mateo, Calif.-based company helps integrate and transfer data between different cloud applications.
“A lot of the software as a service (SaaS) buyers don’t want to get into hiring dozens of Java programmers,” Gaurav Dhillon, cofounder and CEO of SnapLogic, said in an interview with VentureBeat. “They want to have something that’s very efficient and that gives them results quickly.”
According to Dhillon, the self-service approach that SnapLogic offers is helpful when companies use many cloud applications.
“We have a world where millennials are comfortable computing with smartphones and tablets,” he said. “ Our mission is to take integration out of the dungeon that is the back office and bring it into the light of the front office to have a self-service paradigm.”
In terms of credibility, Dhillon isn’t just another straight-out-of-college startup CEO. He’s an enterprise software veteran — a former CEO of data integration company Informatica, which went private last year. Informatica could be viewed as SnapLogic’s main competitor, but there are other players, such as MuleSoft and Talend, which went public in July, that also have considerable weight in the sector. More consumer-friendly app integration tools include IFTTT, Zapier, and Microsoft Flow.
SnapLogic has attracted over 700 customers — Adobe, Box, Groupon, Target, and Verizon are but a few that pay for the software. “We move approximately 7.5 billion documents every day for our customers,” said Dhillon. The usage-based pricing model starts at $10,000 a month and depends on the number of applications and data sources the customers connect.
Moving forward, Dhillon wants to see companies use SnapLogic for more modern workloads, like artificial intelligence (AI). “We’re very excited about the IoT [internet of things],” he said. “We have a streaming platform, which is a natural fit for streams of data coming from sensors.”
Dhillon declined to talk about SnapLogic’s valuation.
When asked whether the company will file for an initial public offering (IPO) next year, the CEO sounded amused: “We don’t have a precise date picked out, but that is the logical path for us.”
This new funding round was led by European private equity firm Vitruvian Partners. Andreessen Horowitz, Capital One, Ignition Partners, NextEquity Partners, and Triangle Peak Partners also participated. The money will be used to expand sales, marketing, and customer service, with a particular focus on Europe. “Expect us to look at other markets, like Latin America and Asia, in 2017-2018,” Dhillon said.
Founded in 2006, SnapLogic has raised a total of $136.3 million to date and has 225 employees.