Nutanix raises $140 million Series E round, valuation at $2 billion

The datacenter startup has now raised a total of $312 million, with a valuation that likely positions it for immanent IPO.

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Enterprise virtualization and storage startup Nutanix has closed a $140 million Series E funding round at over a $2 billion valuation.

The round brings the five-year-old company's total funding to $312 million, following a $101 million Series D round earlier this year. Two Boston-based investors led the most recent raise, which Nutanix will use to invest in sales, marketing and research and development — and also pave the road for an initial public offering.

Similar to the web-scale infrastructure models adopted by Google and Facebook, Nutanix's Virtual Computing Platform consolidates server and storage tiers into a single integrated appliance. 

In June, the company announced a deal with Dell to build the XC Web-scale Converged Appliance for a series that would combine Nutanix software with Dell hardware. That deal, combined with agreements with Arrow and Avnet, boosted the company's already rapid growth.

"The convergence of servers, storage and networking in the datacenter has created one of the largest business opportunities in enterprise technology, and Nutanix is at the epicenter of this transformation," said Dheeraj Pandey, Nutanix co-founder and CEO. "We are proud of the progress we have made, and are confident in capitalizing on the enormous opportunity that lies ahead of us."

Pandey told ZDNet at the time of the Series D round that he saw the potential addressable market for Nutanix at more than $50 billion. Its more than 800 customers include Airbus, Honda, ConocoPhillips, Total SA, Toyota, the US Navy and Yahoo! Japan. 

As for the company's IPO intentions, Pandey had this to say in January:

"Although we don't have a timeline, we are absolutely working towards building a company of lasting value and liquidity. An event like an IPO is a very natural course from where we are today to where we'll be in the next 12 to 15 months."