Nile, a networking startup co-founded by former Cisco Systems executives John Chambers and Pankaj Patel, has recently secured $175 million in a funding round to fuel its ambitions of becoming a formidable competitor to industry giant Cisco. The round was co-led by March Capital and Saudi Arabia’s sovereign wealth fund, Sanabil Investments, and attracted investments from corporate players such as Saudi Telecom Company and Liberty Global. With this infusion of capital, Nile aims to build on its previous success and provide a network-as-a-service (NaaS) solution that offers secure wired and wireless products to challenge the dominance of established players in the corporate Wi-Fi space.
Nile’s latest funding round, which follows a previous funding of $125 million, signifies the growing interest and confidence in the startup’s vision. While the company did not disclose its valuation, it announced that it had doubled since the last funding round. In 2020, PitchBook estimated Nile’s valuation to be around $395 million. This significant increase in valuation reflects the market’s recognition of Nile’s potential to disrupt the networking industry.
Nile is positioning itself as a viable alternative to industry leaders like Cisco, Juniper Networks, and Aruba Wireless. The startup aims to differentiate itself by offering ease of use, lower costs, and advanced security features in its network solutions. Pankaj Patel, CEO of Nile, believes that the company’s services-only offering can bring substantial savings to clients, ranging from 30% to 50% at each location. Nile’s consumption-based model eliminates upfront fees for equipment and reduces maintenance costs, making it an attractive option for businesses looking to optimize their networking infrastructure.
“We really equate this very much like a utility, that customers are really looking for something which is invisible. That is the level of ease and reliability and simplicity that people need and that is what we have done,” Patel told Reuters.
Since its technology became available in May, Nile has already secured notable customers such as Stanford University and startup Carta. This early success highlights the market demand for the startup’s innovative networking solutions. Nile’s ability to attract high-profile clients demonstrates the trust and confidence that organizations have in the company’s ability to deliver on its promises of secure, cost-effective, and user-friendly networking services.
With the latest funding, Nile plans to bolster its sales and marketing team to target mid-sized enterprises with 500 to 5,000 employees. The company aims to position itself as a global player, and the participation of March Capital and Sanabil Investments in the funding round solidifies its expansion plans. Sumant Mandal, managing partner at March Capital, believes that the partnership with these entities will provide Nile with the necessary resources and expertise to achieve its global ambitions.
“I think the ambition is to be global, and that’s why you have the kind of entities that have invested in this round as good partners for the company’s expansion plan,” said Mandal.
Nile’s recent funding success and its impressive client base indicate that the startup has the potential to challenge the status quo in the networking industry. By offering ease of use, lower costs, and advanced security features, Nile presents itself as a compelling alternative to established players like Cisco. With its sights set on global expansion, the company is poised to make waves in the corporate Wi-Fi market. As Nile continues to innovate and disrupt, it will be interesting to see how the industry giants respond to this emerging challenger.
Q: What is Nile?
A: Nile is a networking startup co-founded by former Cisco Systems executives John Chambers and Pankaj Patel. It offers network-as-a-service (NaaS) solutions focusing on secure wired and wireless products, providing an alternative to established players in the corporate Wi-Fi space.
Q: How much funding did Nile raise in its latest round?
A: Nile raised $175 million in its latest funding round, co-led by March Capital and Saudi Arabia’s sovereign wealth fund, Sanabil Investments.
Q: What is Nile’s valuation?
A: Nile’s valuation has doubled since its last funding round, but the exact valuation was not disclosed. In 2020, PitchBook estimated Nile’s valuation to be around $395 million.
Q: How does Nile differentiate itself from incumbents like Cisco?
A: Nile aims to differentiate itself by offering ease of use, lower costs, and advanced security features in its network services. Its consumption-based model eliminates upfront fees for equipment and reduces maintenance costs, providing significant savings for clients.
Q: Who are some of Nile’s notable clients?
A: Nile has signed customers such as Stanford University and startup Carta, showcasing its ability to attract high-profile clients and deliver on its promises of secure, cost-effective, and user-friendly networking services.
Q: What are Nile’s expansion plans?
A: With the latest funding, Nile plans to expand its sales and marketing team and target mid-sized enterprises with 500 to 5,000 employees. The company aims to position itself as a global player in the networking market.
First reported by REUTERS.