CoreStack, a US-based enterprise technology startup with a research and development centre in India, has raised $8.5 million (Rs 63.2 crore) in its Series A round of funding led by Naya Ventures.
The funding round also saw participation from strategic investors, CoreStack said in a statement without disclosing their identities.
The latest funding has taken the total capital the company has raised so far to $13 million, it added.
The startup, operated by Cloudenablers Inc., had in 2018 raised funding in a round led by venture capital firm Z5 Capital.
CoreStack will use the fresh funds to expand its sales and marketing team and boost product development in the areas of single and multi-cloud enterprise governance solutions.
It also plans to hire 20 cloud specialists at its research and development centre in Chennai, which currently employs 64. All the startup's products are designed, built and delivered from Chennai.
The startup was founded in 2016 by Ezhilarasan Natarajan, Sabapathy Arumugam, Krishnakumar Narayanan and Thiruvalluvar NB. It has enterprise clients across the US, Europe, and India across various sectors such as financial services, healthcare and education. The startup was created with the aim of addressing governance challenges arising from large-scale cloud adoption by companies.
“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,” said Natarajan, CoreStack’s CEO.
The public cloud service market is expected to grow to $331.2 billion by 2022, according to Gartner.
The US- and India-based venture capital firm makes early-stage bets focused on business-to-business companies.
The VC firm was founded by Dayakar Puskoor (general partner), Prabakar Reddy (managing partner) and Gowri Shankar (venture partner) in 2011.
In 2016, VCCircle had reported that Naya Ventures had hit the first close for its $50 million (Rs 270 crore) fund.
Its other investments include Altia Systems, Kore.ai, Hyperverge and Docsynk. Altia Systems was acquired for $125 million by Danish company GN Group last year.