Cloud Security Platform Zscaler Raises A $100M Series B Round Led By TPG, Now Valued At Over $1B

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Security platform Zscaler today announced that it has raised a $100 million Series B funding round led by late-stage investor TPG. The company, which offers a wide range of web, mobile and cloud security services for enterprises, has now raised a total of $138 million and says that its valuation in this last round was over $1 billion. Other investors include EMC and previous investor Lightspeed Venture Partners.

“Our mission is to make the Internet safe for business by delivering an amazing security platform that protects our clients and enables the strategic adoption of cloud computing, mobile devices and the Internet of Things,” said Jay Chaudhry, CEO of Zscaler, in today’s announcement.

“The investment and partnership from TPG and the global relationships and experience they provide will enable us to accelerate investment in our technology, grow our customer base and aggressively scale our business to meet growing demand. We are excited to join an elite group of security companies valued in excess of $1 billion.”

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The company says it now has more than 5,000 customers — double the number from a year ago. Its customers include the likes of Humana, NBC, ExxonMobil and the UK’s National Health Services. The company says it now protects more than 13 million employees.

Zscaler’s technology sits between corporate networks (and the user’s mobile devices) and the cloud — no matter whether that’s a cloud computing service like AWS, Azure or a privately hosted OpenStack cloud, or cloud-based applications like Dropbox and Office 365. Because it inspects all traffic to these services from company-owned devices and networks, it can offer both security and compliance solutions.

“We see tremendous opportunity in the rapidly growing cybersecurity industry, and after spending significant time in the space, we found Zscaler to be the leading cloud-based security solution for the world’s largest and most demanding customers — a true SaaS platform like that of Salesforce or Workday,” said Nehal Raj, a partner at TPG — and now a Zscaler board member — in today’s announcement. “We are looking forward to partnering with Jay and his team to accelerate growth, most immediately by introducing Zscaler to the potential customers and channel partners within our global network.”

Zscaler was founded in 2008, which makes it one of the oldest players in this market. Some of its competitors include FireEye, Qualys and Bit9, as well as long-established incumbent like Cisco and Symantec.

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