<?xml version="1.0"?>
<ownershipDocument>

    <schemaVersion>X0206</schemaVersion>

    <documentType>3</documentType>

    <periodOfReport>2019-12-19</periodOfReport>

    <noSecuritiesOwned>0</noSecuritiesOwned>

    <issuer>
        <issuerCik>0001752474</issuerCik>
        <issuerName>KLDiscovery Inc.</issuerName>
        <issuerTradingSymbol>KLDI</issuerTradingSymbol>
    </issuer>

    <reportingOwner>
        <reportingOwnerId>
            <rptOwnerCik>0001723594</rptOwnerCik>
            <rptOwnerName>MGG Investment Group LP</rptOwnerName>
        </reportingOwnerId>
        <reportingOwnerAddress>
            <rptOwnerStreet1>ONE PENN PLAZA, 53RD FLOOR</rptOwnerStreet1>
            <rptOwnerStreet2></rptOwnerStreet2>
            <rptOwnerCity>NEW YORK</rptOwnerCity>
            <rptOwnerState>NY</rptOwnerState>
            <rptOwnerZipCode>10119</rptOwnerZipCode>
            <rptOwnerStateDescription></rptOwnerStateDescription>
        </reportingOwnerAddress>
        <reportingOwnerRelationship>
            <isDirector>1</isDirector>
            <isOfficer>0</isOfficer>
            <isTenPercentOwner>1</isTenPercentOwner>
            <isOther>1</isOther>
            <officerTitle></officerTitle>
            <otherText>See remarks</otherText>
        </reportingOwnerRelationship>
    </reportingOwner>

    <reportingOwner>
        <reportingOwnerId>
            <rptOwnerCik>0001384687</rptOwnerCik>
            <rptOwnerName>Racz Greg</rptOwnerName>
        </reportingOwnerId>
        <reportingOwnerAddress>
            <rptOwnerStreet1>ONE PENN PLAZA, 53RD FLOOR</rptOwnerStreet1>
            <rptOwnerStreet2></rptOwnerStreet2>
            <rptOwnerCity>NEW YORK</rptOwnerCity>
            <rptOwnerState>NY</rptOwnerState>
            <rptOwnerZipCode>10119</rptOwnerZipCode>
            <rptOwnerStateDescription></rptOwnerStateDescription>
        </reportingOwnerAddress>
        <reportingOwnerRelationship>
            <isDirector>1</isDirector>
            <isOfficer>0</isOfficer>
            <isTenPercentOwner>1</isTenPercentOwner>
            <isOther>1</isOther>
            <officerTitle></officerTitle>
            <otherText>See remarks</otherText>
        </reportingOwnerRelationship>
    </reportingOwner>

    <nonDerivativeTable>
        <nonDerivativeHolding>
            <securityTitle>
                <value>Common Stock</value>
            </securityTitle>
            <postTransactionAmounts>
                <sharesOwnedFollowingTransaction>
                    <value>250000</value>
                </sharesOwnedFollowingTransaction>
            </postTransactionAmounts>
            <ownershipNature>
                <directOrIndirectOwnership>
                    <value>I</value>
                </directOrIndirectOwnership>
                <natureOfOwnership>
                    <value>See Footnote</value>
                    <footnoteId id="F1"/>
                </natureOfOwnership>
            </ownershipNature>
        </nonDerivativeHolding>
    </nonDerivativeTable>

    <derivativeTable>
        <derivativeHolding>
            <securityTitle>
                <value>8.00% Convertible Debenture Due December 19, 2024</value>
                <footnoteId id="F2"/>
            </securityTitle>
            <conversionOrExercisePrice>
                <value>18.00</value>
            </conversionOrExercisePrice>
            <exerciseDate>
                <value>2019-12-19</value>
                <footnoteId id="F2"/>
            </exerciseDate>
            <expirationDate>
                <value>2024-12-19</value>
            </expirationDate>
            <underlyingSecurity>
                <underlyingSecurityTitle>
                    <value>Common Stock</value>
                    <footnoteId id="F2"/>
                </underlyingSecurityTitle>
                <underlyingSecurityShares>
                    <value>5555556</value>
                    <footnoteId id="F2"/>
                </underlyingSecurityShares>
            </underlyingSecurity>
            <ownershipNature>
                <directOrIndirectOwnership>
                    <value>I</value>
                </directOrIndirectOwnership>
                <natureOfOwnership>
                    <value>See Footnote</value>
                    <footnoteId id="F1"/>
                </natureOfOwnership>
            </ownershipNature>
        </derivativeHolding>
    </derivativeTable>

    <footnotes>
        <footnote id="F1">MGG Investment Group LP (&quot;MGG&quot;) is the investment advisor to certain investment funds and/or accounts (&quot;MGG Funds&quot;) that hold the debentures reported herein. Gregory Racz (&quot;Mr. Racz&quot;, and together with MGG, the &quot;Reporting Persons&quot;) is the President and Chief Legal Officer of MGG. Kevin Griffin (&quot;Mr. Griffin&quot;) is the Chief Executive Officer of MGG. The Reporting Persons and Mr. Griffin each disclaim beneficial ownership of the securities held by the MGG Funds, except to the extent of its or his pecuniary interest therein.</footnote>
        <footnote id="F2">The holder of the debentures may, at its option, require the Issuer to convert all (and not less than all) of the then-outstanding principal amount (including any interest paid in kind) of the debentures (and any or all accrued and unpaid interest thereon and all other amounts owing to the holder under the debentures, subject to certain exceptions). Accordingly, the principal amount of debentures owned by the holders and the number of shares of common stock issuable upon conversion of the debentures may increase from time to time.</footnote>
    </footnotes>

    <remarks>MGG may be deemed to be a director by deputization for purposes of Section 16 under the Securities Exchange Act of 1934, as amended, by virtue of the fact that Mr. Griffin currently serves on the board of directors of the Issuer.</remarks>

    <ownerSignature>
        <signatureName>/s/ MGG Investment Group LP, by Gregory Racz, President &amp; Chief Legal Officer</signatureName>
        <signatureDate>2019-12-27</signatureDate>
    </ownerSignature>

    <ownerSignature>
        <signatureName>/s/ Gregory Racz</signatureName>
        <signatureDate>2019-12-27</signatureDate>
    </ownerSignature>
</ownershipDocument>
