HubSpot, which helps small and mid-size businesses reach prospective customers using social media, has raised Rs.175 crore in mezzanine funding round. The investors include Altimeter Capital, Cross Creek Capital, and the Boston mutual fund giant Fidelity Investments. The new commitments will bring HubSpot’s total fund-raised to about Rs.500 crore since it was founded in 2006 by two alumni of the Massachusetts Institute of Technology’s Sloan School of Management, Dharmesh Shah and Brian Halligan.
The new funds will help with HubSpot’s other growth plans of acquiring small marketing companies. HubSpot previously bought two Cambridge start-ups, Performable, a marketing automation company and Oneforty, a social business hub, primarily for their engineering talent.
"HubSpot empowers our customers to do inbound marketing right, by attracting leads using extraordinary content and then converting them using highly personalized context. HubSpot customers have generated more than 5.6 crore leads since we founded the company, which is what happens when you create marketing people love," says Dharmesh Shah, Co-founder and CTO, Hubspot.
HubSpot recently announced new European headquarters in Dublin, Ireland and hosted over 2,800 marketing professionals to its annual INBOUND conference. The company also added 100 net new jobs in the past year, bringing the total employee count to more than 400, and plans to add 55 more by year's end. The company has dubbed its approach “inbound marketing,” because it attracts customers who are already searching for a given company’s products or services. In August, it released a new version of its marketing platform, HubSpot 3, which lets companies deliver more personalized messages to current and prospective customers and is intended to appeal to larger clients with longer, more complex sales cycles.