CoreStack, a cloud governance and compliance software-as-a-software (SaaS) startup, on Tuesday said it has raised $30 million (Rs 222 crore) as part of its Series B funding round led by technology focused private equity firm Avatar Growth Capital.
Existing investors Dallas Venture Capital (DVC), Iron Pillar, and other angel investors also participated in the funding round, said CoreStack in a statement.
The fresh capital will allow the startup to accelerate its pace of growth and innovation as well as help expand into newer markets.
The startup was founded in 2016 by Ezhilarasan Natarajan, Sabapathy Arumugam, Krishnakumar Narayanan and Thiruvalluvar NB. It has enterprise clients in 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.
Natarajan, CEO of CoreStack, noted that the adoption of enterprise cloud solutions has witnessed a massive uptick post pandemic.
Despite the pandemic, the company also saw significant acquisition of new customers, along with key executive appointments, and continued adoption at large enterprises, the statement noted.
“CoreStack’s holistic approach to cloud-native governance is the missing link that enterprises need in order to get the best out of their cloud deployments," said Abhay Havaldar, managing director of Avatar Growth Capital. Havaldar, former head of General Atlantic Partners India, will join the company's board of directors.
Avatar Growth Capital was floated by Havaldar and Vishal Bakshi, former head of Goldman Sachs Private Equity India. Last year, it invested in SirionLabs Inc., which operates an eponymous SaaS firm focussed on contract lifecycle management (CLM).
CoreStack is Iron Pillar's debut bet from its second fund. The mid-stage focused venture capital firm had invested in CoreStack in December last year with an investment of $4 million.
"VC business is all about doubling and tripling down on your winners. And that is precisely what Iron Pillar has done with CoreStack’s latest financing," said Mohanjit Jolly, partner, Iron Pillar.
Earlier, CoreStack had raised $8.5 million (Rs 63.2 crore) in its Series A round of funding led Dallas Venture Capital (formerly Naya Ventures) in March last year.