I am happy to share that we have closed the second investment of our Fund II in Xertica, the leading cloud consulting company in Latin America, formed through the merger of some of the largest Google Cloud Partners in the Spanish-speaking region. Antonio Couttolenc, Saul Chrem and Andres Cifuentes are the entrepreneurs that have built these businesses and now continue to lead Xertica. Three entrepreneurs from Pacific Alliance countries that decided to merge their business to share know-how and best practices and gain scale to serve their clients better.
The newly-formed entity is the #1 Google Cloud partner in Latam, enabling the digital transformation of over 3,000 firms. Xertica currently has presence in 5 countries: Mexico, Colombia, Peru, Argentina, and Ecuador. Recently, Xertica was named an Endeavor company in June 2017 and Google Cloud Partner of the year in 2016.
Xertica has implemented the most advanced technologies in Software, Infrastructure and Platform ‘as a Service’ modalities, with a highly qualified and specialized team of more than 200 people. Additionally, the company has developed a methodology that places an emphasis on the human side of technological change through in-person training and consulting services. The focus on this key component of implementation and change management enables Xertica to enhance the success of the enterprise digital transformation.
The IT storage and processing industry is shifting rapidly from on-premise to cloud, which currently exceeds $128B dollars globally already. The market in Latin America is growing very rapidly at over 27% annually and is expected to reach $35B dollars by 2021. Google is a major player in the Public Cloud space commercializing its product offering through Google Cloud Partners such as Xertica. The cloud products Google distributes through its partners include SaaS collaborative tools (G Suite, Google Sheets/Docs/Slides and others), and Infrastructure and Processing Platform tools (Google Cloud Platform).
We led Xertica’s $6.5 million dollars Series A capital raising, with participation from Endeavor Catalyst and other investors, that will allow the company to double its investment in its new Big Data, Analytics and Machine Learning service offerings.
Antonio Couttolenc, Xertica’s CEO will lead the company to continue growing its digital transformation ecosystem to bring a new set of services to the market by enabling its customers to expand its digital business connections, empowering its employees to boost its execution and innovation capabilities and democratizing the technology for all the market segments.
We are observing a very fast transition of companies across all sectors towards public cloud storage and processing. This is occurring on a global scale and at an especially fast pace in Latin America. Xertica is ideally positioned to take advantage of this market opportunity, thanks to its regional leadership and the unparallelled experience of its amazing entrepreneurial team.
In Dalus Capital, we seek to invest in high-growth Mexican and Latin American companies differentiating through innovation and technology. We welcome Xertica to this group!