Korea's MegazoneCloud raises $122m Series B
Korean enterprise cloud services provider MegazoneCloud has closed a $122 million Series B round featuring more than 20 investors, including at least eight private equity firms.
Investors included Stonebridge Capital, JKL Partners, Kakao Investment, Korea Investment Partners, KT Investment, Midas Private Equity, Nau IB Capital, and KB Investment. They were joined by KB Securities, Korean Development Bank, and NongHyup Bank among others.
It follows a $42 million round featuring the National Pension Service that was touted at the time as the largest ever Series A for a Korean cloud company. This traction has been supported by local regulatory changes that have permitted expanded use of cloud technology in business applications. Preparations for a Series C and an IPO in 2023 are underway.
Founded in 1998, MegazoneCloud positions itself as a one-stop service provider for cloud adoption, implementation, deployment, operation, security, 24-hour support, managed services and optimization. Since the closing its Series A, the company has acquired a string of businesses to widen services offerings and established joint ventures with an IT service arm of LG Group and Japan’s Itochu Techno-Solutions Corporation.
MegazoneCloud entered Korea’s enterprise cloud services segment in 2012 and posted revenue of $400,000 in 2014, which grew to $144 million by 2018 as operations expanded to the US, Japan, China, and other areas of Asia. Revenue surged to KRW4.2 trillion ($3.9 billion) in 2019, with the customer base growing to some 3,000 companies, according to a statement.
The company, along with its affiliates and subsidiaries, expects to generate revenue in excess of $500 million in 2020.
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