Zscaler, Inc., the Internet
security company, today 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 organizations,
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 recognized 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.