Druva, a software company that sells cloud data backup services, today announced that it has closed a $ 147 million funding round. The Caisse de dépôt et placement du Québec (CDPQ), a group that manages the Quebec pension fund, led the round, which also saw the participation of Neuberger Berman. Previous investors, including Atreides Management and Viking Global Investors, have also invested capital in the transaction.
Druva last raised a $ 130 million Viking-led round in mid-2019 for a valuation of around $ 1 billion. At the time, TechCrunch said the company’s software-as-a-service (SaaS) backup service was aimed at a large market. (TechCrunch also covered the company’s $ 51 million funding round in 2016 and its $ 80 million raise from 2017.)
Since then, SaaS has continued to grow at a rapid pace, including a strong 2020 boosted by COVID-19, boosting digital transformation efforts for businesses of all sizes. Against this background, it is not surprising to see Druva put together a new round table.
A recent tie-up between Dell and Druva, first reported in January this year, was officially announced earlier this month. Dell’s selection of Druva could help provide the unicorn with a customer base to sell for some time. TechCrunch wrote about Druva earlier this year, during the reporting process the company said it had “almost tripled its annual revenue in three years.”
His new round included side actions, which Neuberger Berman chief executive Raman Gambhir called hard to land on a call with TechCrunch. He explained that some of the secondary sales were due to some earlier funds reaching their end of life. Druva CEO Jaspreet Singh stressed that his supporters strive to do what is best for the company instead of just maximizing their returns in a joint interview.
Singh told TechCrunch that Druva’s business is picking up steam. Normally we’ll note that this looks like IPO fodder, especially since Druva broke the $ 100 million ARR threshold in 2019. However, as the company has been making IPO noise for some time, it’s hard to predict. when she could pull the trigger. Our coverage of the 2016 Company Cycle noted that the company could go public within a year. And our coverage of his 2019 investment included Singh telling TechCrunch that an IPO was 12 to 18 months away.
It probably is now, but that is not the point. With refreshed accounts, a market moving in its direction, and an early investor relieved from its latest investment, the company has several quarters of time to play. Still, Singh pointed out that his new funding round has selected investors who he believes are building a long-term position; this is the kind of verbiage CEOs make when they build a cap table before the IPO.
Gambhir told TechCrunch that his company has already applied for shares in Druva’s possible IPO. Maybe we’ll see Fidelity come up with a check for $ 50 million in a few months.
Every startup that raises capital tells the media that they will use the funds to expand their staff, double their technology, and often invest in their go-to-market (GTM) movement. Druva is no exception, but its CEO told TechCrunch that his company currently has over 200 open GTM positions. Not bad. Presumably, these expenses will help the business maintain its high percentage growth rate, as it, finally, does on the list.
This is another cycle of growth for a late stage, business-oriented software company. But it is also a turn in a company which had to move its operations to the United States when it was created, at the request of its investors by Singh. And Druva has done a pretty neat job in the cloud, he told TechCrunch earlier this year, to make sure it can defend software-like margins despite the hardware storage loads.
This is an S-1 that we are looking forward to. Start the countdown.