Introduction to Nerdio

Nerdio, a pioneering platform designed to streamline the deployment and management of Microsoft cloud technologies for companies, has successfully raised $500 million in its Series C funding round.

Enhanced Valuation and Market Presence

Based in Chicago, the startup notes that its valuation has quadrupled since its Series B round two years ago, firmly establishing it in the unicorn territory, although the company opted not to disclose its specific valuation at this time.

-exclusive Insights

“We are not disclosing the specific valuation, but it is north of $1 billion,” Nerdio’s Chief Revenue Officer, Joseph Landes, revealed to TechCrunch via email.

Company Background

Nerdio originated from an “IT-as-a-service” company called Adar in 2020, with Adar coming under private equity ownership and Nerdio charting its course as a dedicated cloud management service provider for notable clients including PayPal, Sony, and Comcast.

Nerdio’s Service Offerings

Nerdio targets companies aiming to optimize their cloud infrastructure deployments and costs. By utilizing Nerdio Manager for Enterprise, the company assists businesses in managing Microsoft’s Azure Virtual Desktop and Windows applications across their workforce. It automates various tasks related to cloud infrastructure and virtual desktop management, such as user-provisioning, application deployment, and provides cost-optimization features like auto-scaling resources to match demand.

Understanding Virtual Desktops

Virtual desktops are essentially computer environments that operate on remote servers instead of physical computers, allowing users to access all their apps, files, and configurations on any device via the internet. Nerdio prides itself on a more modern, cloud-native approach compared to traditional legacy players such as Citrix, which was established before the cloud computing revolution.

Relevance in Current Work Environments

This capability is particularly pertinent in today’s work landscape, where millions have adopted remote and hybrid working environments, enabling them to securely access all their work from any location.

Simplifying Cloud Environment Management

“Managing cloud environments is complex and costly — it typically requires a lot of specialized technical expertise and a mix of costly, siloed tools,” Landes explained. “Nerdio provides a single, comprehensive platform that allows organizations to manage their Microsoft cloud environments without the need for extra skills, tools, or workflows.”

Previous Funding and Current Investors

Prior to this funding round, Nerdio had secured an $8 million Series A round in 2020, followed by a $117 million Series B tranche three years later. For its latest $500 million funding, Nerdio welcomes U.S. growth equity firm General Atlantic, alongside Lead Edge Capital and Stepstone, who have acquired a minority stake in the company.

Ownership Structure

While Nerdio did not confirm the specific ownership percentages across its array of investors, it assured that the founders “retain a significant stake in the company.”

Future Plans

Nerdio plans to utilize its investment to expand its product offerings across key Microsoft services, including Azure Virtual Desktop, Windows 365, and Microsoft 365. Additionally, the company intends to increase its headcount, which currently stands at 300 employees.

Expansion and Hiring

“We plan to grow that number significantly as we scale our global presence and build customer support and engineering teams,” Landes stated.