Seattle-based enterprise-cloud governance technology startup CoreStack has raised $8.5 million in a Series A financing round led by venture capital firm Naya Ventures.
Returning investor Palo Alto-based venture capital firm Z5 Capital and some undisclosed strategic investors participated in the round, the company said in a statement.
This round takes CoreStack’s overall funding to $13 million.
The company will use the fresh funds to expand its sales and marketing efforts and accelerate product development in the area of single and multi-cloud enterprise governance solutions. CoreStack also plans to add 20 more cloud specialists to its existing workforce of 64 in its research centre by the end of 2020.
All CoreStack products are designed, built, and delivered from its Chennai research and development centre, the statement said.
Dayakar Puskoor, managing director of Naya Ventures, will join CoreStack’s board following the investment.
“We believe enterprises will continue to invest in multiple clouds, protected with strong governance. CoreStack is driving the marketplace, and we are excited to partner and help build this great enterprise,” Puskoor said.
Founded in 2016 by Ezhilarasan Natarajan, Sabapathy Arumugam, Krishnakumar Narayanan, and Thiruvalluvar NB, CoreStack’s solution helps enterprises manage cloud compliance and autonomous cloud governance at scale.
It enables continuous cloud compliance with automatic issue resolution for industry standards and regulatory frameworks. The company also offers a centralised view of multiple cloud accounts and their access to manage cloud security postures, automates cloud operations, streamlines cloud consumption and optimises cloud budgets.
Its clientele spans across the US, Europe, and India in sectors such as financial services, healthcare, IT services, independent software vendors (ISVs), and education services. The company claims its solution has helped its clients record annual cloud cost savings of 20%-60%.
“As enterprises embrace the cloud as a part of their digital transformation initiatives, there is a pressing need for continuous and autonomous governance in areas of compliance, security, operations, cost, and consumption in a market valued to be $266 Billion in 2020,” Ezhilarasan Natarajan, CEO, CoreStack, said.
Naya Ventures is a US and India based venture capital firm investing in early-stage business-to-business companies. Naya has invested in over 20 companies and has generated five exits to date. Its portfolio includes Kore.ai, Altia Systems, Hyperverge, and Docsynk.