Enterprise cloud governance technology start-up CoreStack, which has a large Research and Development (R&D) centre in Chennai, said on Wednesday that it has raised $8.5 million in Series-A funding led by Naya Ventures and other strategic investors.
The company said the fund will be used for expansion and in adding 20 more cloud specialists to the existing team of 64 in its Chennai facility.
The fresh funds will bring CoreStack’s total funding to $13 million, enabling aggressive expansion of sales and marketing efforts and accelerated product development in the area of single and multi-cloud enterprise governance solutions.
The move will also see the expansion of its Board, with Dayakar Puskoor, managing director of Naya Ventures, joining CoreStack. “CoreStack has a huge potential for upward growth, with the increasing demand for their autonomous, scalable and profitable cloud governance solutions,” Puskoor said.
Founded in 2016 by enterprise cloud veterans Ezhilarasan Natarajan, Sabapathy Arumugam, Krishnakumar Narayanan and Thiruvalluvar NB, CoreStack is a venture-backed start-up that empowers enterprises to achieve continuous and autonomous cloud governance at scale.
“We’re at the cutting edge of a novel cloud governance innovation. The financial partnership and enterprise expertise of Naya Ventures, combined with Z5 Capital, including our strategic investors, will further catalyse our growth milestones. The CoreStack team anticipates 3x growth in revenues in the next 12 months,” Ezhilarasan said.
The Series A funding follows a record year of growth for CoreStack, and rapidly growing enterprise clients across the US, Europe and India. The company said it made key executive appointments, earning significant market traction with enterprises adopting CoreStack for large scale cloud implementation.
Some of its clients in India and overseas, who are engaged in financial services, healthcare, large IT services, ISVs and education services, have reported an annual cloud cost savings of around 20-60 per cent using the CoreStack solution, said the company. All CoreStack products are designed, built and delivered from its Chennai R&D centre.