Data management startup Cohesity today announced that it has more than doubled its valuation to $2.5 billion in a $250 million Series E funding round, bringing its total funding to more than $650 million. 

The San Jose, California-based company said it will use the new funding to advance its research and development and expand its market reach both domestically and internationally. 

“Closing a major funding round during these times of economic uncertainty is testament to the promise that our investors see in Cohesity,” said Mohit Aron, CEO and founder of Cohesity, in a statement. 

The increased use of cloud platforms as storage mediums has grown alongside enterprises' transition to the cloud and beyond. According to Gartner, around 10% of enterprise-generated data is created and processed outside a traditional centralized data center or cloud. By 2025, this figure will reach 75%. “As the volume and velocity of data increases, so too does the inefficiency of streaming all this information to a cloud or data center for processing,” said Gartner senior research director Santhosh Rao in a blog post. 

Large organizations and distributed enterprises, such as national retailers, global warehouse and distribution centers, and IT services, have dozens if not thousands of remote locations, which continue to become more dispersed, further decentralizing data. 

Enterprises in these verticals need to backup and protect their data close to the source and then back the data up to the core data center or cloud periodically, said Cohesity’s senior director of product marketing Raj Dutt in a previous interview. 

Cohesity’s platform consolidates secondary data storage silos onto a hyperconverged, scale-out platform that spans private and public clouds. It already already supports hypervisors from VMware, Nutanix, and Microsoft, along with traditional enterprise databases and applications such as Oracle, SQL, SAP HANA, and Microsoft Office 365. 

Secondary data is typically stored in silos and requires different technologies to reach that data. While customers consolidate their secondary data, they are also consolidating their infrastructure as well, allowing it to be used in more efficient ways.

“Cohesity’s latest funding round is a testament to its business strategy and the value its software-defined data management platform provides to customers and partners,” said Phil Goodwin, research director, IDC.

The Series E round was led by DFJ Growth, Foundation Capital, Greenspring Associates, and Wing Venture Capital.