Hot Cloud Storage Provider Wasabi Fuels Continued Growth with $27.5 Million Funding Round
BOSTON, January 19, 2021 — Wasabi, the hot cloud storage company, today announced that it has raised $27.5 million in debt financing from MGG Investment Group, LP (“MGG”), a leading private investment firm. The new funding will be used to bolster the company’s infrastructure, including constructing additional data centers in new geographies, to meet accelerating global demand for Wasabi’s affordable, predictable and simple cloud storage solutions. This funding follows the company’s April 2020 $30 million equity round, bringing Wasabi’s total financing raised since launch to nearly $140 million.
Today’s announcement comes on the heels of a banner year for Wasabi. In 2020, the company’s total storage expanded 150%, annual revenues grew by more than 3 times over 2019, and the customer base increased to more than 21,000 businesses, educational institutions, municipalities and technology service providers worldwide. Wasabi’s growth continues to be fueled by its expansive partner community of more than 4,000 channel partners and 350 technology partners and its ongoing expansion into new geographies and markets.
Wasabi’s low cost, high-performance storage is empowering organizations to rethink critical data strategies by providing access to bottomless storage capacity that can scale up or down based on changing needs. Wasabi’s storage is one-fifth the cost of Amazon S3, faster than the competition with no fees for egress or API requests, and no vendor lock-in. These characteristics, along with strengths in multi-cloud deployments, established Wasabi as an “Outperformer” by GigaOm when compared to other alternatives to Amazon AWS S3.
“Our transformative deal with MGG marks Wasabi’s first major institutional debt round, which is an important milestone for our company and mission as we continue to roll out more data centers and bring our unique solutions to more customers around the world,” said Wasabi CEO & co-founder, David Friend. “MGG distinguished itself due to the firm’s successful track record of partnering with companies to build enduring value as well as the team’s understanding of our business model and growth potential. This financing provides our company with stable, long-term support to drive our rapid growth and we look forward to a prosperous relationship with MGG in the years to come.”
“While the migration to cloud storage was already well underway, the COVID-19 pandemic has accelerated this shift and demonstrated the need for increased remote data accessibility and storage,” said Kevin Griffin, Chief Executive Officer and Chief Investment Officer of MGG. “Wasabi is a disruptor in the space, and its growth over the past year is a testament to the company’s standout technology and the clear market need for secure, infinite, high-performance, high-value storage. We are pleased to have the opportunity to support Wasabi in its global growth, enabling cloud storage to become the next utility for all data-driven organizations.”
Lincoln International served as financial advisor to Wasabi in connection with the financing.
For more information on Wasabi’s hot cloud storage, please visit Wasabi.com.
Wasabi provides simple, predictable and affordable hot cloud storage for businesses all over the world. It enables organizations to store and instantly access an infinite amount of data at 1/5th the price of the competition with no complex tiers or unpredictable egress fees. Trusted by customers worldwide, Wasabi has been recognized as one of technology's fastest-growing and most visionary companies. Created by Carbonite co-founders and cloud storage pioneers David Friend and Jeff Flowers, Wasabi has secured $140 million in funding to date and is a privately held company based in Boston.
About MGG Investment Group, LP
Founded in 2014, MGG Investment Group is a private investment firm that provides bespoke financing solutions to mid-size and growing lower-middle market companies. MGG works with owners and management teams to help build lasting value, address immediate needs, and solve complex situations while generating attractive risk-adjusted returns for investors irrespective of and through market cycles. For more information, visit mgginv.com.
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