Egnyte nabs $29.5M in Series D funding to replicate Box, Dropbox popularity
Enterprise cloud file storage company Egnyte announced today that it received $29.5 million in a Series D funding round. The funding round was participated by existing investors Kleiner Perkins, Google Ventures and Polaris Partners, and new investors Seagate, CenturyLink, Northgate Capital. To date, Egnyte has already raised over $65 million in funding.
Egnyte's press release said its revenue had doubled year over year for the last two years and is expecting its revenue to more than double ending this year. The report by TechCrunch confirmed to the cloud service provider that its current range in revenue is somewhere between $25 million and $40 million, and that Egnyte refused to provide more details. Moreover, the company said it is expecting to break even in its cash flow by the fourth quarter of next year. Tecrunch also said in its report that Egnyte achieved 60% in current gross margins, but has the intention to boost the margins by one-fourth to hit its 75% goal in the near future. Egnyte also expected to obtain GAAP (generally-accepted accounting principles) revenue somewhere between $95 million and $105 million in 2015. GAAP means a framework of financial accounting guidelines in any given jurisdiction.
Egnyte is seeking to invest in its international expansion and marketing plans as it is relatively still a newcomer in the cloud business. On the other hand, Egnyte prides itself for being a hybrid product, as it is betting on the idea that majority of the companies are still balking on the idea to keep their most sensitive data on a public cloud. TechCrunch noted that this should not be that difficult, considering the amount of funding money poured into cloud services. Referring to its previous reports, Box recently took in $100 million in a series funding round. Dropbox, on the other hand, is set to earn more the $200 million this year.