Nexla Raises $12M Series A for Data Operations Business

Nexla Secures $12 Million Series A Funding

Nexla, a data operations startup that first gained recognition at the TechCrunch Disrupt Battlefield in New York City in 2017, has been strategically developing its business. Following a beta launch and a successful $3.5 million seed funding round secured at the Battlefield event, the company has achieved positive cash flow.

Today, with a solid financial base established, Nexla announced the completion of a $12 million Series A funding round.

Investment Details

Industry Ventures spearheaded the investment round, with contributions from Liberty Global Ventures, Blumberg Capital, Engineering Capital, Storm Ventures, Correlation Ventures, and several individual investors specializing in the industry.

A Unified Data Platform

Saket Saurabh, co-founder and CEO of Nexla, explains that the company is focused on creating a comprehensive data platform. This platform consolidates data integration, preparation, and monitoring into a single solution.

While the company launched in 2017, Saurabh acknowledges being slightly ahead of market demand initially. However, the data landscape, particularly concerning machine learning applications, has rapidly evolved, leading to increased customer engagement.

Growing Customer Base

Nexla is currently serving notable clients such as DoorDash, Instacart, Poshmark, and Freshworks, demonstrating the platform’s value and effectiveness.

This traction has naturally attracted investor attention, and Saurabh believes the timing is optimal for securing additional capital to accelerate growth.

Strategic Funding Decision

“Our cash flow positive status allows us to maintain control over the company’s direction,” Saurabh stated. “We determined that now is the opportune moment to raise capital and expedite our progress.”

Pandemic Impact and Increased Demand

Despite an initial slowdown during the early stages of the pandemic last year, Nexla’s customer base largely experienced a surge in the need for a robust data platform to manage expanding business data volumes.

“Data is now a critical asset for the majority of businesses we serve, and we observed heightened demand following the initial pandemic disruptions,” Saurabh explained. “For instance, companies like Instacart and DoorDash saw significant increases in activity, necessitating more advanced technology and solutions, which directly contributed to our growth.”

Focus on Enterprise Clients

Nexla’s clientele primarily consists of established enterprises dealing with substantial data sets. Saurabh emphasizes the consistent commitment of these enterprises to data and technology, and the growing need for accelerated solutions and support for evolving business models.

Expanding Market Reach

Unlike many startups that begin with smaller businesses and then target enterprises, Nexla initially focused on larger organizations. The new funding will be used to broaden the market by extending the platform’s availability to smaller companies.

“The need for this type of solution isn’t limited to large corporations; more companies are recognizing the value earlier in their development,” Saurabh noted. “A key focus moving forward is to make our platform accessible to a wider range of organizations, particularly those in earlier growth stages.”

Future Growth and Team Expansion

With the new investment, Nexla plans to expand its team, aiming to reach approximately 50 employees by the end of the year.

Saurabh believes that a remote-first approach will facilitate the creation of a more diverse workforce. “Building a diverse and global team is incredibly important, and the ability to hire remotely allows us to achieve that goal.”

Hybrid Work Model

While building a distributed team globally, Nexla maintains an office presence in San Mateo, California. Saurabh anticipates adopting a hybrid work model as offices reopen.

“In early-stage companies, face-to-face interaction is invaluable for fostering relationships and building trust,” he said. “We will continue to support opportunities for team members to meet in person when it is safe to do so, even for those working remotely.”