New Delhi: Skyflow, a data-privacy startup, has recently expanded its reach by offering data residency support in additional markets. The company aims to assist businesses in keeping specific data within defined borders, catering to the increasing need for compliance with regional data regulations. With the ever-growing importance of data privacy, companies must ensure that sensitive information, such as EU customer data, remains within the geographical boundaries it originated from.
Initially, Skyflow emerged as a tool designed to help companies securely store personally identifying information (PII). Its robust API allows businesses to effectively handle privacy, encryption, and data-related challenges associated with storing PII and other sensitive data. By addressing these concerns, Skyflow helps organizations maintain data security and comply with privacy regulations.
In its recent expansion efforts, Skyflow has extended its data residency capabilities to markets including Japan, India, Indonesia, and Bahrain. The CEO of Skyflow, Anshu Sharma, emphasized that these expanded regional data storage capabilities will enable software companies to expand their services more rapidly while adhering to local regulatory requirements for data storage and protection. This development offers a significant advantage for companies looking to expand their market presence without the burden of establishing their own data storage and security infrastructure for each new market.
The expansion of Skyflow’s regional support involved substantial investments. Sharma acknowledged that the process incurred a high fixed cost. However, Skyflow was able to undertake these expenses due to its successful funding efforts, including a $45 million Series B round in late 2021. This investment allowed the company to shoulder the infrastructure and operational costs necessary to meet its customers’ requirements. Such proactive investment is characteristic of venture capital funding, which aims to foster growth and secure a substantial market share.
In the current sluggish market environment, where every tech company is vying for growth opportunities, Skyflow’s expanded offerings are expected to yield favourable results. As software companies continue their expansion into new markets, they face the challenge of complying with various data regulations and rules independently. Alternatively, they can choose to partner with Skyflow or its competitors, such as EverVault and Protegrity, to navigate local requirements efficiently.
Skyflow has already witnessed significant international adoption, with over 40% of its current business coming from non-American customers. The CEO, Sharma, highlighted that several well-known software companies generated a significant portion of their revenue from international markets when they went public, as evidenced by their S-1 filings. As Skyflow further strengthens its regional support, it will be interesting to observe whether the company’s non-American revenue surpasses the 50% mark in the coming quarters.
In addition to its expansion in data residency support, Skyflow has ventured into supporting generative AI services. While the company initially focused on serving the fintech and healthcare sectors, it recognized the market demand for services related to Language Model Generation (LLM). To cater to this demand, Skyflow developed a version of its data storage service specifically tailored to meet the unique requirements of generative AI applications.
Skyflow’s expansion of regional data residency support, coupled with its foray into generative AI services, positions the company as a versatile and comprehensive solution provider in the data privacy and security landscape. As businesses continue to prioritize data protection and regulatory compliance, Skyflow’s offerings are poised to address their evolving needs effectively.