Funding

Leil Secures €1.5M To Make Hyperscale Storage Infrastructure Accessible For All

Nov 6, 2025 | By Kailee Rainse

Tallinn-based data storage software startup Leil has secured €1.5 million in Seed funding, led by Karma Ventures and joined by Specialist VC.

SUMMARY

  • Tallinn-based data storage software startup Leil has secured €1.5 million in Seed funding, led by Karma Ventures and joined by Specialist VC.

The enterprise storage market, valued at around $22 billion and growing nearly 20% annually, faces skyrocketing data volumes over 330 million terabytes produced daily, expected to triple by 2030. Conventional hard drives are increasingly costly and energy-intensive, driving demand for more efficient storage solutions.

Leil’s software enables enterprise-scale use of high-density shingled magnetic recording (SMR) drives. SMR overlaps data tracks like roof shingles, storing roughly 20% more data per disk than conventional CMR drives, lowering cost per terabyte, energy consumption, and operational overhead.

SMR requires sequential writing to prevent corruption, a limitation that previously restricted adoption to hyperscalers with proprietary tools. Leil automates this process, managing how data is written, moved, and recovered across thousands of drives. It classifies content by usage, powers down inactive drives and can reduce energy use by up to 70% depending on workload.

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Ideal for multi-petabyte environments—such as national broadcasters, public archives, AI training centers, and research institutes—Leil’s platform is already in use across these sectors. Co-founder and CEO Aleksandr Ragel notes that the next wave of AI and scientific innovation is straining under the weight and cost of its own data.

We founded Leil to change that. We are making hyperscale storage economics a reality for every enterprise, delivering significant cost savings, reducing environmental impact, and ensuring critical data remains under our customers' control. Our HDD-native approach builds a high-performing, more resilient and efficient foundation for the data-intensive future.

Leil offers a capacity-based subscription model and a phased transition approach, enabling companies to run its software alongside existing hardware and gradually integrate SMR drives.

The new funding will be used to accelerate go-to-market efforts, expand the product roadmap, and grow the commercial team.

About Leil

Leil Storage revolutionizes data storage by combining high-capacity spinning drives with modern software innovations. Its solutions bring hyperscale efficiency to on-premises environments offering energy-efficient, cost-effective and scalable storage for data-intensive organizations, enabling businesses to manage growing data volumes without the complexity and expense of traditional hyperscaler infrastructure.

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