Nutanix, Called the Next Oracle Raises $140 Million in Funding
Nutanix has often been called the next Oracle and now it is clear why. It its latest round of funding, the company snapped up $140 million. As a result, the value of the company has been pegged at $2 billion. The company is planning to go public next year, which means the company's value may go above $2 billion. After all, Alibaba did pull a coup of sorts on Wall Street recently when it opened to an IPO of $25 billion.
Nutanix was founded in 2009 and in a little over five years, the company has acquired clients like the United States army and Toyota. The company stores and manages large quantities of data for these organizations. Incidentally, the company was valued at $1 billion in January this year. The value jumped to $2 billion solely because of the $140 million infusion by venture capital funds.
Funding round led by Wellington and Fidelity
Sources close to the deal said that this round of funding was led by Wellington and Fidelity, both large financial institutions from Boston. It is a sign of the strong confidence the funds have placed in the Nutanix leadership and its potential for growth.
Bipul Sinah of Lightspeed Ventures - the first investor in the company said that Nutanix has shown rapid growth, defying all revenue and growth forecasts. He called Nutanix the next big thing to come out of Silicon Valley. Curiously, the company has grown faster than any other company in the enterprise infrastructure sector in the last 15 years. He also said that the company could be the next Oracle or VMware.
Company growing largely
The company is still in private hands yet it is growing at an astronomical rate of 200 percent each year. It is serving about 800 customers with a staff of 650 people from offices in the United States, Japan, India, Australia, China, Thailand, France, Korea and the Middle East.
Nutanix's services helps organizations store large amounts of data without affecting their operations. The company is also offering analytics and data processing tools, like Google. These tools can handle large volumes of consumer information, a godsend to organizations that are not as tech savvy like the United States Navy and the United States Postal Service. Nutanix is also working with tech companies like Yahoo and eBay.
Experts are saying that the reason the company is not coming out with an IPO now, but in 2015 is because it wants the markets to calm down so that it can net more money. However, looking at Alibaba's success, we would say that the market is ready and there is no need for Nutanix to wait.