SaaS provider CoreStack has raised $30 Million in a Series B round led by Avatar Growth Capital, with participation from Dallas Venture Capital, Iron Pillar, and other angel investors. This round brings CoreStack’s total funding to $45 Mn, including a Series A round in March 2020.
Founded in 2016 by Ezhilarasan Natarajan, Sabapathy Arumugam, and Krishnakumar Narayanan, CoreStack offers an AI-powered multi-cloud governance solution that helps enterprises conduct FinOps, SecOps and CloudOps.
The startup claims to help clients decrease cloud costs by 40% and increase operational efficiency by 50%, by governing operations, security, cost, access and resources. It also helps customers comply with standards like ISO, FedRAMP, NIST, HIPAA etc.
The startup works with customers across industries including financial services, healthcare, retail, education, telecommunications, technology and the government sector. It claims to help enterprises govern $1 Bn in cloud consumption annually.
“CoreStack’s unique and innovative end-to-end cloud governance platform is a trailblazer in the industry. The rapid adoption of CoreStack by enterprises endorses the transformative value that the solution is able to provide, and we’re truly impressed with the leadership team and the progress the company has been able to make,” said Abhay Havaldar, managing director of Avatar Growth Capital.
The global cloud services market was valued at $325.7 Bn in 2019 and is expected to reach $1.6 Tn by 2030, growing at a CAGR of 15.8%.
“Adoption of enterprise cloud solutions has witnessed a massive uptick post-pandemic. CoreStack is leading the way in helping these companies unleash the power of the cloud through governance across compliance, security, operations, cost, and consumption,” said Ezhilarasan Natarajan, CEO of CoreStack.
The cloud services market forecast of 2030 is projected to be higher than pre-pandemic estimates. The pandemic and its fallout have boosted the market’s growth due to increasing demand for cloud infrastructure and services to support crucial digital solutions such as ecommerce and remote work. There was also an uptick in demand for cloud services from entertainment platforms offering online gaming and video streaming services.