Tegile Closes New $33M Funding With Lead Investor Western Digital, Looks To Grab Nimble Storage Business From HPE

All-flash and hybrid-flash storage vendor Tegile said it had raised more funding, this time with hard drive vendor Western Digital as the lead investor.

Tegile is also looking at Hewlett Packard Enterprise's pending acquisition of Nimble Storage, which competes with Tegile in the all-flash storage and hybrid-flash storage market, as an opportunity to grab some of its rival's channel partners.

This new $33 million tranche is a continuation of the Series D funding round that brought the company about $94 million nearly two years ago. Tegile has now raised $178 million to date, said Rohit Kshetrapal, CEO of the Newark, Calif.-based company.

[Related: The 10 Coolest Flash Storage And SSD Products Of 2016]

Kshetrapal declined to discuss in detail how much of a stake Western Digital has in Tegile. "It's a substantial amount," he told CRN. "Western Digital is a very good partner. We use their hard drives, SSDs, and controller cards, as well as SanDisk SSDs and cards. We also work together on the technology side."

Tegile and Western Digital have a strong partnership, Kshetrapal said. "Our job is to maximize it," he said. "We work together in the market to make Tegile stronger. Their investment helps us capitalize on it."

Kshetrapal declined to talk about the possibility that Western Digital might acquire Tegile. "Our goal is to stay independent at this point," he said.

Western Digital is currently Tegile's only strategic investor. Earlier funding rounds also included the participation of SanDisk, but Western Digital in late 2015 acquired SanDisk.

Kshetrapal said that Tegile plans to use HPE's acquisition of Nimble Storage, which is scheduled to close this month, as a way to reach out to Nimble Storage's channel partners who might be displaced as a result of the acquisition.

Nimble Storage partners will find a big difference with Tegile's product lines, he said. "Tegile has high-density flash storage with higher capacity points," he said. "We can fit a half a petabyte in a 5U space combining fast SSDs and dense SSDs. So customers get larger flash deployments at a lower cost."

Tegile also offers partners unified block and file data capabilities and the only vendor to offer de-dupe and compression across multiple grades of flash storage and across flash and disk capacity, Kshetrapal said.

Read more articles on: