Tegile Systems closes $70 million funding round

Three new investors, Capricorn Investment Group, Cross Creek Advisors and Pine River Capital Management, join existing investors August Capital, Meritech Capital Partners, Western Digital and SanDisk to fund the round.

“With a best-in-class product portfolio, an award-winning partner programme, and numerous industry accolades, Tegile continues to set the bar for up-and-coming storage vendors,” said Dipender Saluja, Managing Director, Capricorn Investment Group. “Tegile is transforming the storage industry by offering unique storage solutions that strike the perfect balance between performance and economics. The opportunity to partner with Tegile and help scale the company as it continues its rapid ascent in the flash storage industry is one that we simply could not afford to pass up.”

Tegile provides innovative flash-optimised storage solutions that enable businesses of all sizes to accelerate their applications, reduce their storage footprint and cut operational costs. Tegile shipped its first storage array in 2012. Since then, the company has deployed more than 1,500 systems within mid-sized and large enterprise environments and has experienced year-over-year revenue growth of 350 percent.

“The enterprise flash storage market is rapidly evolving and there are a number of companies vying for leadership position,” said Rohit Kshetrapal, CEO of Tegile. “I truly believe that we have built something unique in the marketplace. Our flash storage solutions deliver the performance, flexibility, and economics that companies need to achieve new levels of business acceleration while controlling IT costs. With this infusion of venture and debt capital, we will be able to satisfy the rising demand for our Tegile Intelligent Flash Arrays and methodically build Tegile into a sustainable multi-billion-dollar business that will deliver maximum value to our investors.”

In the next 18 months, Tegile plans to double the number of employees from its current base of 300, scale up its operations, and further expand its reseller channel to satisfy the rising demand in Europe and Asia. In North America, the company will continue to ramp its sales teams to meet the needs of enterprise and federal government customers.

“I’ve seen what Tegile’s team is capable of, and couldn’t be more pleased with the technical and management direction of the company,” said Vivek Mehra, general partner at August Capital, which was Tegile’s first investor. “Tegile’s foundation of performance and value is enabling broader adoption of flash storage in business IT, and delivering benefits for big segments of the market that have not typically been served well by other storage vendors.”

“Tegile solved a mission-critical need for a hybrid Fibre Channel boot and virtualisation storage system for our newly deployed MLB Network post-production system. The technology exceeded our performance needs and enabled more workflows than originally anticipated, given the flexibility of the software and performance of the system,” said Tab Butler of MLB Network. “Tegile’s technology allows us to provide our users a low latency, high availability OS environment while simultaneously fulfilling our high-performance virtualisation needs. It is a cost-effective solution that allows us to improve our operations while ensuring data integrity.”