CoreStack, a Seattle and Chennai-based enterprise cloud governance technology startup, has raised $8.5 million in a Series A funding round led by venture capital firm Naya Ventures, with participation from strategic investors.
CoreStack has a research and development (R&D) centre in Chennai, and plans to add 20 more cloud specialists to its existing workforce of 64 at its Chennai R&D centre by the end of this year.
Naya Ventures is a US- and India-based VC firm investing in early-stage business to business (B2B) companies. Dayakar Puskoor, Managing Director of Naya Ventures has joined CoreStack’s Board of Directors.
CoreStack said that the company has raised $13 million so far, enabling expansion of sales and marketing efforts and product development in single and multi-cloud enterprise governance solutions.
“CoreStack has huge potential for upward growth, with the increasing demand for their autonomous, scalable, and profitable cloud governance solution,” said Puskoor. “We believe enterprises will continue to invest in multiple clouds, protected with strong governance.”
CoreStack said it grew its enterprise clients across the US, Europe and India over the past year, and made key executive appointments. Enterprises adopted CoreStack for large scale cloud implementation, the statement added.
The company was founded in 2016 by Ezhilarasan Natarajan, Sabapathy Arumugam, Krishnakumar Narayanan, and Thiruvalluvar NB.
“As enterprises embrace the cloud as a part of their digital transformation initiatives, there is a pressing need for continuous and autonomous governance in the areas of compliance, security, operations, cost, and consumption in a market valued to be $266 billion in 2020,” said Natarajan, also the CEO of CoreStack.
“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,” he added.
