Cloud storage company Wasabi has raised $27.5 million in debt financing from MGG Investment Group, to bolster the company’s infrastructure, build additional data centers in new geographies and attract new customers, according to a statement from the company.
Lincoln International served as financial advisor to Wasabi in connection with the financing.
This funding follows the company’s April 2020 $30 million equity round, bringing Wasabi’s total financing raised since launch to nearly $140 million. In 2020, Wasabi’s total storage expanded 150 percent, annual revenues grew by more than 3x over 2019, and the company’s customer base increased to more than 21,000 businesses, educational institutions, municipalities and technology service providers worldwide, the company said.
Wasabi Offers Amazon S3 Alternative
Wasabi offers a hot cloud storage alternative to Amazon Web Services (AWS), with access to bottomless storage capacity that the company says costs one-fifth the cost of Amazon S3, is faster than its competitors and is available without fees for egress or API requests or vendor lock-in, according to the statement. Wasabi's approach has seen MSPs increasingly leveraging Wasabi as a cloud storage system for backup platforms like Veeam, Arcserve and others.
In this ChannelE2E video interview, conducted on May 26, 2020, David Friend, Wasabi co-founder and CEO, explains the company’s technology, MSP partner strategy and business momentum.
Wasabi said its growth is fueled by more than 4,000 channel partners and 350 technology partners and the ongoing expansion into new geographies and markets, which this investment will support.
Wasabi Funding: Executive Commentary
“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 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.”
