Tel Aviv, Israel-based Secure Access Service Edge (SASE) provider Cato Networks on Tuesday announced raising $200 million at a market valuation of $2.5 billion.
The funding round, which brings the total raised by the firm to $532 million, was led by Lightspeed Venture Partners, with participation from Greylock, Aspect Ventures / Acrew Capital, Coatue, Singtel Innov8, and Shlomo Kramer. The money will be used to fuel sales, technology, and business growth.
Cato has developed a cloud-native SASE platform designed to securely and optimally connect an organization’s data centers, branches, users and cloud resources. Customers’ traffic goes through Cato’s platform, where it’s analyzed for threats.
The company says its platform is used by more than 1,000 customers, including major organizations. It claims dozens of big enterprises spend over $250,000 in ARR with Cato, and some even spend more than $1 million.
“Cato is at the forefront of SASE transformation,” said Shlomo Kramer, CEO and co-founder of Cato Networks. “Large enterprises are deploying Cato as their global network to reap the operational and business benefits of Cato’s proven and mature SASE platform. Cato is rapidly expanding its service capabilities, global footprint, and sales and marketing teams, while preserving our unique DNA of agility, simplicity, and ease of doing business that is so valued by customers and partners.”
Cato told SecurityWeek that it’s focused on building a large enterprise software company and an IPO is a natural milestone that it expects to occur over the next few years.