Nasuni Raises $60M for Its Cloud-based File Storage Offering

Nasuni Corporation, a provider of cloud-based file storage solutions, has announced a $60 million equity investment from Sixth Street Growth, the growth investing platform of global investment company Sixth Street, which will also join Nasuni’s board of directors. Nasuni has raised a total of $148 million in four rounds of funding over the previous five years.

To increase cyber resilience, facilitate hybrid work methods, and achieve frictionless scalability to fulfill business demands, organizations worldwide are rapidly embracing cloud solutions. According to IDC, cloud file services usage will expand at a 40 percent compound annual growth rate (CAGR) over the next five years, resulting in a $14 billion industry by 2025. It would mean that the file storage market segment is growing at a faster rate than both block storage and object storage markets.

“Nasuni offers its clients great products, with solutions that are highly effective at solving pressing needs for efficient cloud data storage and data protection,” said Michael McGinn, partner and co-head of Sixth Street Growth. “Nasuni is poised to accelerate its already impressive organic growth through international expansion and the development of new features and capabilities as it continues to be a leader in the file data services market.”

Nasuni currently has roughly $100 million in cash on its balance sheet as a result of this new financing. Nasuni’s File Data Services will leverage the additional investment to fuel sustained development and expansion as the firm invests in innovation, worldwide expansion, and possible strategic acquisitions.

Cybersecurity Threats

Paul Flanagan, CEO at Nasuni
“Nasuni pioneered the cloud-based file data services category almost a decade ago and has led the way in defining the architecture, business model and user experience,” said Paul Flanagan, CEO at Nasuni.

Current company valuation is significantly higher than Nasuni’s previous capital round, which was completed 18 months ago. This fast expansion is in response to rising demand for its file storage platform, as well as enterprises moving workloads to cloud environments to reap the benefits of larger scalability, better economics, and enhanced protection from ever-increasing cyberthreats.

“The unprecedented events of the past 24 months have accelerated the generational cloud transformation for businesses and the increasing value of data,” said Paul Flanagan, Chief Executive Officer (CEO) at Nasuni. “Cybersecurity threats such as ransomware are forcing businesses to think differently about their data infrastructure. Nasuni pioneered the cloud-based file data services category almost a decade ago and has led the way in defining the architecture, business model and user experience. This investment and our continued, rapid growth are validation of our vision.”

Nasuni just announced record-breaking financial achievements for the fiscal year ending December 31, 2021. Yearly recurring revenues (ARR) increased significantly year over year (YoY), with a continuous rise in worldwide client wins and a fast growing number of customers paying Nasuni more than $1 million in annual contract value. Nasuni’s network of partners also got a lot of traction.

As is a cloud-based alternative to traditional NAS and file server silos, Nasuni combines file data into readily extensible cloud object storage at a fraction of the price. Nasuni would also remove the requirement for sophisticated legacy file backup and disaster recovery infrastructure, making IT administration easier. Headquartered in Boston, Massachusetts, Nasuni serves client in over 70 countries.

Sixth Street is a worldwide investment business with assets under management and committed capital totaling more than $60 billion. Since its founding, Sixth Street has invested more than $5 billion in more than 40 firms as part of its growth investment strategy. Airbnb, AvidXchange, Bloomreach, Datavant, Gainsight, Heap, MDLIVE, Spotify, SnapLogic, and Sprinklr are among the companies that Sixth Street Growth has invested in.