Clumio, a data backup and recovery provider for companies utilizing the public cloud, has successfully raised $75 million in a Series D funding round.
The funding round comes as Clumio, headquartered in Santa Clara, California, reported a substantial four-fold increase in annual recurring revenue (ARR) last year. This growth was fueled by the acquisition of new customers such as Atlassian, which now utilizes Clumio for the cloud-based version of its Jira project management software.
Clumio and similar companies like Veeam and Rubrik are addressing several challenges in the market. While public cloud spending continues to rise, businesses are increasingly threatened by ransomware attacks, with extortion groups experiencing significant growth in 2023. Additionally, concerns persist regarding data center disasters, exemplified by the fire at France’s OVH in 2021, which resulted in widespread website outages and substantial data loss.
Furthermore, the proliferation of regulations with stringent data retention requirements and the demand for greater transparency in the expanding generative AI field create a conducive environment for companies like Clumio. These companies assist organizations in automating their data backup and recovery processes, thereby addressing critical needs in the market.
Backed up
Clumio, founded in 2017, primarily focuses on safeguarding workloads hosted on Amazon’s cloud infrastructure. It expanded its services to include support for Microsoft 365 in 2020. While cloud providers like AWS offer native data backup solutions that include features such as replication, versioning, and object locking, these are primarily designed to address accidental data deletion and overwrites. In the event of such incidents, these solutions typically revert to the previous version of the data or restrict restoration options to specific points in time.
However, it’s crucial to maintain a clear separation between production data (live data) and backup data in secure environments. Many backup solutions, including those offered by cloud providers themselves, do not ensure this separation. Consequently, if there’s a security breach and credentials are compromised across an organization, both the production data and backups could be at risk.
Clumio tackles this challenge by providing a default air-gapped and immutable platform. This approach ensures that enterprises’ data remains secure even in the event of adversarial incidents like security breaches.