Cloud master data management platform provider Reltio is looking to grow its business with a new $120 million round of funding.
Reltio earmarked the new funding, made public on Nov. 4, to help it grow its go-to-market and engineering efforts as it builds out its cloud data platform.
At the foundation of Reltio's platform is cloud master data management (MDM) technology. The vendor has expanded its MDM functionality over the years with data integration capabilities.
Doug Henschen, analyst at Constellation Research, said Reltio's strength is enabling organizations to synthesize many sources of data including complex data types.
Doug HenschenAnalyst, Constellation Research
"Back when it was a startup, 10 years ago, Reltio led the way in bringing master data management capabilities into the cloud," Henschen said. "The company has since broadened its charter to solving big challenges such as resolving identity when building connected customer experiences."
Going beyond master data management could lead to IPO
Reltio founder, chairman and CTO Manish Sood led the company as CEO until September 2020, when new CEO Chris Hylen took over.
Sood said the vendor has continued to build out its technology during the past year, which is what led to the new fundraising that is intended to accelerate its growth.
Hylen said his goal is to help the vendor become what is known as a "rule of 40" organization. The rule of 40 is a financial axiom that states a SaaS vendor should have revenue growth and a profitability margin that is greater than or equal to 40%.
"We want to be a world-class rule-of-40 growth company," Hylen said. "If we do that and we execute on that, we'll have plenty of options, including an IPO."
Expanding master data management with data integration
Among Reltio's recent advancements is the vendor's integration hub, which is part of the Reltio Connected Data Platform release 2021.3 that became available Oct. 21.
Sood explained the vendor's vision is to ensure that organizations can bring data together with information from the Reltio platform to drive operational use of data across the enterprise.
"Our goal through Reltio integration hub is to facilitate that easier flow of information both into Reltio as well as out of Reltio, into different applications and business processes," Sood said.
The goals of master data management
Reltio's CTO and CEO both said they see master data management as core to the company's platform and its customers' data applications.
"The goal of MDM is to bring together the data for the core set of information that you run your business on," Sood said.
Sood said the core set of information includes the master data about the organization, its products, assets and customers, while creating a unified view of the data.
Looking forward, Reltio is working on growing its cloud footprint, which includes services on AWS and Google Cloud Platform. The vendor said it plans to extend support for Microsoft Azure in the coming months.
"We are going to continue to improve the ability for customers to use Reltio as the data fabric that they run their business on, and getting into each and every aspect of what we need to serve the data for every business process and operation that they're running," Sood said.