Cloud storage provider Box has announced a $150 million investment from TPG Growth and Coatue Management, which is aimed at making Box “the next great enterprise software company” according to investors.
In a statement, Box co-founder and CEO Aaron Levie said, “We’re excited to work with TPG Growth and Coatue as we continue to aggressively invest in our customers, technology, and future growth.”
As part of the funding agreement, TPG Growth will appoint a director to the Box’s Board of Directors.
Since its launch in 2005, Box has helped many companies and individuals transition to cloud storage. Today, it has around 27 million individual users spanning 240,000 businesses worldwide, which include 99 percent of the Fortune 500. Box’s latest financial update showed a 94 percent increase in first quarter 2014 compared to the same quarter last year. But the company is still not in the black, having lost $38 million in Q1 2014, compared to $34 million in Q1 2013.
The cloud storage market is a highly competitive space that’s divided between Box, Dropbox, Microsoft’s SkyDrive, Google Drive and others. There are also new entrants such as Open-Xchange’s OX Drive, and competition from Peer-2-Peer options such as BitTorrent Sync, and Mega.
It was reported that Box has been delaying a $250 million Initial Public Offering originally filed in March, which would help offset Box’s losses in this stage of growth. In the meantime, this latest infusion of funding will likely help Box keep itself operating and growing its customer base while it plans its next action.