Kiteworks Raises $456 Million to Expand Secure Data Transfer Platform

Kiteworks has secured a $456 million growth equity investment to strengthen its market position in secure data transfer and collaboration.

The investment came from Insight Partners and Sixth Street Growth, the company said in a Wednesday (Aug. 14) press release.

“This minority stake investment affirms Kiteworks’ role in providing a revolutionary solution to the world’s growing challenge of tracking and controlling sensitive data in motion and in use,” Jonathan Yaron, CEO and chairman of Kiteworks, said in the release.

There is a growing focus among industries and regulators on tracking and controlling the data layer, Yaron added.

There’s also an expanding cybersecurity risk as more cybercriminals target sensitive content from supply chains and other ecosystems, the release said.

Kiteworks’ security platform is authorized by FedRAMP to support file sharing, managed file transfer and email data communications, enabling it to meet a range of global compliance requirements, according to the release.

The company’s solution brings together several content communication channels — file share, file transfer, managed file transfer, email, application programming interfaces (APIs) and web forms — in a single, dedicated, secure platform, per the release.

Insight Partners Managing Director Eoin Duane said in the release: “In today’s complex digital landscape, Kiteworks addresses a critical market need and stands out as a leader in providing effective solutions that significantly improve risk management.”

Sixth Street Growth Managing Director Alex Katz added that the Kiteworks platform “is purpose built to meet the challenges of the most secure and compliance-sensitive organizations” and that the company aims to capitalize on “the significant market opportunities ahead.”

It was reported in May that a survey of compliance professionals found that 90% of companies said their cybersecurity risks increased in the last year. That survey was fielded after a series of high-profile cyberattacks underlined the threat facing businesses.

PYMNTS Intelligence found that 82% of eCommerce merchants experienced cyberattacks or data breaches in the year before being surveyed.

Forty-one percent of eCommerce merchants said they had already begun enhancing their anti-fraud protections, while another 54% said they planned to do so within the year, according to the PYMNTS Intelligence and Nuvei collaboration, “Fraud Management in Online Transactions.”