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As the demand for cloud services continues to surge amid accelerated digital transformation, Boston-based Wasabi Technologies is gearing up to scale its technology offerings and presence across markets.
The cloud storage provider today announced it has raised $250 million in a combination of debt and series D equity funding. It plans to use the equity part of the financing to drive expansion into additional vertical markets and geographies, enhance channel partnerships, and scale the company’s go-to-market team and strategies. Meanwhile, the debt segment will go toward financing capital infrastructure and extending its technology’s capabilities, including new features and industry-specific offerings.
Wasabi and its ‘affordable’ cloud storage offering
Founded by Carbonite co-founders David Friend and Jeff Flowers in 2017, Wasabi offers “hot cloud storage,” a universal, one-size-fits-all cloud object storage service that eliminates confusing storage tiers and satisfies nearly all storage performance requirements. It treats all the data equally and makes it readily accessible, regardless of whether it is classified as hot (frequently accessed) or cold (infrequently accessed).
The company claims that its offering is significantly faster than traditional frequent-access cloud storage products, and highly affordable thanks to its pay-as-you-go and reserved storage subscription models. In fact, it enables organizations to store and instantly access an unlimited amount of data at one-fifth the cost of the competition. This includes big-name “hyperscalers” like AWS S3, Microsoft Azure, and Google Cloud Platform as well as on-premise storage.
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“We set ourselves apart by focusing on just one thing — cloud storage — and doing it better than anyone else. With our singular focus we’re not competing with our customers or our partners, and it also allows us to become technical masters of our craft. It has also helped us achieve best-in-class performance and security, at the lowest prices in the industry. We purposefully focus 100% of our attention on being the absolute best at cloud storage,” Friend, who is also the CEO of Wasabi, told VentureBeat.
Since its launch, Wasabi has roped in more than 40,000 enterprises from different sectors in over 100 countries, and 13,000 partners, with as many as 13 storage regions located across North America, Europe and Asia Pacific. Its revenues have grown more than twofold since 2020-21.
The big opportunity
According to Markets and Markets, the global cloud storage market size is projected to grow from $78.6 billion in 2022 to $183.7 billion by 2027, at a CAGR of 18.5%. This growth will be driven by the rising volume of data within enterprises and by the cost and compliance benefits offered by cloud solutions.
“Cloud storage isn’t a nice-to-have any more, it’s a necessity. Everyone has data — more and more every year — and it needs to be stored somewhere,” Friend said. “It also helps that Wasabi does it more affordably than anyone else, which is key as companies are looking to keep costs under control in the current economic climate. So, while many other tech companies have seen big drop-offs in business, our growth continues at a very robust level.”
“We have a tremendous opportunity here — to capture on-premise data as it migrates in the cloud, across every industry, across every geography. Today’s funding makes us more than up for that challenge,” he added.
Notably, the equity round of the company was led by L2 Point Management, while the debt facility has been extended by MGG Investment Group.
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