Seattle and Chennai-based SaaS startup CoreStack, on Wednesday (March 18), announced that it has raised $8.5 Mn in its Series A funding round led by Naya Ventures along with participation from other undisclosed strategic investors.
CoreStack plans to invest the funds to hire new talent pool. The company will hire 20 cloud specialists to add to its existing workforce in the Chennai-based research and development centre by the end of 2020. Notably, all CoreStack products are designed, built, and delivered from the Chennai office. The startup also plans to enable expansion of sales and marketing stack.
With this, the total funding raised by CoreStack now stands at $13 Mn. The company also expanded its board with Naya Ventures’ managing director Dayakar Puskoor joining CoreStack’s board of directors.
Founded in 2016, by Ezhilarasan Natarajan, Sabapathy Arumugam, Krishnakumar Narayanan, and Thiruvalluvar NB, CoreStack aims to solve the governance issues faced by businesses in their cloud operations. The startup wants to solve these problems by providing an effective tech-driven strategy which also helps enterprises to run their cloud operations effectively and efficiently.
With the increasing adoption of cloud-based technologies, Natarajan expects the need for continuous and autonomous governance in areas of compliance, security, operations, cost, and consumption to also spike. Some of the services provided by CoreStack include continuous compliance with automatic issue resolution, centralised view and access of multiple cloud accounts, automation of cloud operations, spend tracking and identification of potential cost-saving opportunities.
CoreStack claims that its clients, from industries such as financial services, healthcare, IT, independent software vendors (ISVs) and edtech, have reported an annual cloud cost savings of 20%-60% using its solution.
CoreStack was recently awarded a patent in the US for orchestration of multiple cloud platforms and services. The startup has also partnered with leading cloud service providers such as Microsoft Azure and Amazon AWS.
According to a report by Gartner, the worldwide public cloud service market is pegged to grow to $354.6 Bn by 2022. Based on these trends, Natarajan predicts that the company is expecting 3X growth in revenues in the next 12 months. In the cloud governance space, platforms such as CloudAwar, CloudHealth, AppFormix, and Monday.com offer services similar to CoreStack.