PubMatic raises $45M in mezzanine financing led by August Capital; Eyes acquisitions

PubMatic, a digital ad platform for publishers, has raised a mega round of $45 million through mezzanine finance, led by August Capital. Its existing investors Draper Fisher Jurvetson, Nexus Venture Partners, Helion Ventures and Silicon Valley Bank also took part in this round.

The mega fundraising comes even as the company is preparing for an IPO, which raises a question mark whether this round of funding will push back the public issue or bankroll an impending acquisition ahead of the proposed IPO.

"The marketing automation landscape is overly fragmented with too many point solutions," said Rajeev Goel, co-founder and CEO of PubMatic. "Over the past 18 months, PubMatic has solidified its position as the leading independent publisher platform via organic development, partnerships and acquisitions. The additional funding will further our mission of making it easier for buyers and sellers of advertising to work together."

In the past, PubMatic had raised around $18 million from VC firms.

As part of the deal, Eric Carlborg, a partner at August Capital, joins the PubMatic board. Carlborg is a former CFO of Provide Commerce, with experience on the boards of Blue Nile, Inc. and Big Lots, Inc.

August Capital manages $1.3 billion in capital and has invested in leading technology companies such as Atheros, Postini, Splunk and Seagate, as well as digital media companies like Adchemy, SAY Media and Adara Media.

"The advertising automation space is vibrant with huge growth potential and PubMatic, with its six-year history of innovation, client base of comScore top 100 publishers and superior strategic selling platform, will continue to lead the industry," said Carlborg.

Earlier this year, PubMatic acquired MobiPrimo, a Pune-based mobile development technology startup, for an undisclosed amount.

The company has also been expanding its top level management and recently hired a chief marketing officer and the first general counsel. They have also made a new appointment and hired Salim Tarazi as vice-president for real-time bidding and ad operations.

Founded in 2006 by Amar Goel, Rajeev Goel, Mukul Kumar and Anand Das, PubMatic provides a platform for premium publishers to help them manage inventories in real time. The platform combines real-time bidding (RTB), unified optimisation and audience insights, as well as hands-on support for publishers, and helps them price, manage and control the inventories they bring to the market.