Zylo, an Indianapolis-based startup working on cloud optimization software, today announced that it has raised a $3.3 million seed round.
Both institutional and individual investors contributed to the round. They include High Alpha Capital, GGV Capital, SV Angel, and software-as-a-service (SaaS) industry leaders such as Interactive Intelligence founder and CEO Don Brown, ExactTarget co-founder Peter McCormick, and Baker Hill co-founder Mark Hill.
“We’re thrilled to be working with such an impressive group of Silicon Valley investors, SaaS experts, and software luminaries who are committed to help us achieve our big vision for the future of SaaS,” said Zylo CEO Eric Christopher in a press release.
Zylo said it will use the funds to expand its sales, marketing, and engineering staff, as well as advance its product, which it says “provides insights into spend, utilization, and user feedback for companies’ SaaS subscriptions.” Zylo is seeking engineers with specific expertise in data science and machine learning.
With companies’ SaaS spending exceeding $200 billion per year, Christopher said, Zylo has the opportunity to “become the definitive software platform that organizations rely on to better manage and optimize their mission critical SaaS investments.”
According to the press release, Gartner predicts the worldwide public cloud services market will grow 16.5 percent in 2016 to total $204 billion. This growth has led to new challenges Zylo intends to solve for the enterprise market, the release went on to say.
Zylo was launched in June out of High Alpha Studio, an Indianapolis acceleration program. The company counts Appirio, Zendesk, Smartling, and Power Reviews among its customers.
