Zscaler Secures $38 Million Investment Round

San Jose, California, August 30, 2012

Zscaler, the Cloud Security Company, today announced that it has secured $38 million in funding from strategic investors, including Lightspeed Ventures. The company, which has until now been exclusively funded by internal investment, is planning to use the new funding to further accelerate its go-to-market strategy with expanded sales and marketing, and further develop its cloud security offering with a high emphasis on mobility.

Zscaler has grown rapidly by transforming the way enterprises address the growing complexities of delivering security to Internet-enabled users, devices and applications that operate beyond the limits of the corporate network. The company’s singular focus on securely enabling businesses for the accelerating challenges of mobility, cloud applications and social media has yielded solid gross margins and high sales growth, turning the company cash flow positive.

“To date, we have resisted outside investment despite inquiries from top-tier investors. Our new strategic partners share our vision and are committed to helping Zscaler build a long-lasting business,” said Zscaler CEO Jay Chaudhry.

Zscaler protects over 8 million users in 160 countries with the world’s largest security cloud, enabling businesses to instantly secure users on any device, anywhere in the world with no hardware or software required. The Zscaler Security Cloud enables IT organizations to replace many different point security products with a single, cloud-delivered solution, while eliminating the need to reroute traffic to a central location or proliferate costly appliances in multiple locations.

Ravi Mhatre, managing director at Lightspeed Ventures, agrees that Zscaler provides a one-of-a-kind platform in the rapidly growing market for “beyond-network” security. “Many web security vendors are putting appliances in the cloud and calling it cloud security,” said Mhatre. “Zscaler is the only company that has the right architecture to securely enable the mobile, cloud and social media applications that often bypass traditional security altogether.”

Zscaler is a founding member of the Cloud Security Alliance, and operates the Zscaler ThreatLabZ research labs, which leverage billions of daily web transactions from millions of users worldwide to identify and alert customers of new and emerging threats as they occur. The company was recently named a leader and “most visionary” in Gartner’s Magic Quadrant report for Secure Web Gateways, and awarded a 2012 Marketing Penetration Leadership Award by Frost & Sullivan.

About Zscaler

Zscaler is revolutionizing Internet security with the industry’s first Security as a Service platform. As the most innovative firm in the $35 billion security market, Zscaler is used by more than 5,000 leading organizations, including 50 of the Fortune 500. Zscaler ensures that more than 15 million users worldwide are protected against cyber attacks and data breaches while staying fully compliant with corporate and regulatory policies.

Zscaler is a Gartner Magic Quadrant leader for Secure Web Gateways and delivers a safe and productive Internet experience for every user, from any device and from any location — 100% in the cloud. With its multi-tenant, distributed cloud security platform, Zscaler effectively moves security into the internet backbone, operating in more than 100 data centers around the world and enabling organizations to fully leverage the promise of cloud and mobile computing with unparalleled and uncompromising protection and performance. Zscaler delivers unified, carrier-grade internet security, next generation firewall, web security, sandboxing/advanced persistent threat (APT) protection, data loss prevention, SSL inspection, traffic shaping, policy management and threat intelligence—all without the need for on-premise hardware, appliances or software. To learn more, visit us at www.zscaler.com.

Additional Resources:

Media Contacts:

Whitney Black 
Director of Communications