Zscaler announces $100 Million investment led by TPG
Zscaler, Inc., the Internet security company, announced the closing of a new round of financing led by TPG. Zscaler is being funded with an aggregate of $100 million. TPG invested in Zscaler, alongside existing investors EMC and Lightspeed Ventures, who also contributed to the round. As part of the new investment, Nehal Raj, Partner at TPG, will be appointed to the Zscaler Board of Directors.
“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.
“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.”
Today, thousands of enterprises and government organisations, including United Airlines, Humana, NBC and National Health Services of the UK, are protecting more than 13 million employees with Zscaler, securing more than 15 billion Internet requests and stopping more than 100 million cyber-threats per day. Zscaler provides the only Internet security platform built as a multi-tenant, distributed cloud service designed to scale and deliver real-time insights into security issues. Gartner recognised Zscaler as a Leader in its Magic Quadrant for Secure Web Gateways report for the fifth consecutive year and Forrester Research named Zscaler a Leader in The Forrester Wave™: SaaS Web Content Security, Q2 2015.
“As one of the premier financial service companies in the world, we are actively adopting new technologies to increase our agility and productivity, reduce expenses and provide better service to our employees and our clients,” said Henry Jiang, Chief Information Security Officer at Oppenheimer & Co.
“Working with Zscaler, we’ve greatly improved our security, reduced expenses by more than 90 percent in certain areas and provided a better and safer Internet experience for our employees. We congratulate Zscaler on this important milestone and look forward to working with them long into the future.”
“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, Partner at TPG.
“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.”
TPG’s investment will come from TPG Growth, the firm’s middle-market fund with more than $7 billion in assets under management and committed capital, and a focus on emerging technologies, industries and markets. The fund has invested in, and helped strengthen companies from Uber to Domo, leveraging TPG’s global platform. TPG is focused on finding and investing in companies that are looking for a long-term partner in growth, and which are a match for its global network and toolkit of industry- and geography-specific experts. UBS Financial Services acted as financial advisor to TPG for the transaction.