Gigas, a cloud hosting service provider from Madrid, Spain, has raised $2.7 million USD in new venture capital funding to speed up its expansion in Latin America, where its revenue grew by a record 30% a month in the past quarter.
The funds came from Cabiedes & Partners, Bonsai Venture Capital and Caixa Capital Risc, who had already invested another $6.4 million in Gigas. In the past twelve months alone, the company has opened offices in Colombia, Chile and Peru; grown revenues in those markets by up to 30% a month; and secured customers like Wal-Mart, Iberia, Aon and the United Nations.
“By investing in Spanish-first service and by developing a strong local presence in Latin markets, we’ve been able to triple revenues over the past twelve months and secure internationally-known enterprise customers,” said Diego Cabezudo, founder and CEO of Gigas. “Our ‘think global, act local’ philosophy is clearly making an impact, and we look forward to cultivating further growth in what we believe are significantly under-served markets.”
Gigas appears to be targeting local start-ups with a strong bond with Spanish language and business culture. Latin America’s cloud hosting industry, according to Gartner, is expected to grow sixfold to reach $1.3 billion USD in 2016.
Giga’s new offices in Santiago (Chile) and Bogotá serve local businesses with local staff. The company claims that it helps clients save up to 40% in service fees.
Barely three-years-old, Gigas already has about 3,000 customers globally, with Latin America accounting for more than 20% of its revenue. Gigas is currently serving its Latin American customers from its data center in Miami, Florida. Reports say it plans to build a data center in Latin America, but is not yet known where where the new center will be based.