Scality secures $20m to smooth the way to profitability

Scality today announced it has bagged $20m in new financing – and said this is enough to fund it to profitability.

The object and file storage startup’s CEO, Jerome Lecat told us: ‘It is a mix of capital and debt, with a mix of existing and new investors. We are not sharing the detail because this is not what matters. What matters is that it makes the company independent from external forces on the financial markets, and that we are really proud of our business results during a really complicated year: more new customers than last year, revenue growth, significant geographic expansion, and lots of product development.”

“We feel really good about our 2020 results, and excited at the prospect of 2021.”

Scality will spend the money on R&D, customer support and sales. Prior to today, the company has raised $152m in equity finance, including $60m in a E-series round in 2018.

“With Scality now funded to profitability, this new financing gives the company the push it needs to continue on its long-term, rapid growth curve. Along with its impressive growth last year, Scality came much closer to profitability in 2020 and, with this new investment, we anticipate the company will reach profitability in 2021,” Jason Donahue, board chairman of Scality, said.

Scality revenues grew 30 per cent in 2020, according to the company which said it experienced the biggest fourth quarter revenue results in its 10-year history. Customer spend grew the most in 2020 in all-flash file and object storage systems, as well as S3 hybrid deployments across the big three public clouds.

The company also proclaimed continuing strength in its HPE alliance and highlighted reseller agreements signed in 2020 with Supermicro and Western Digital.

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