ChaCha Raises $12 Million, Reduces Staff
ChaCha used to be a search engine with guides, but now it is an SMS service that finds answers to custom questions. Last summer the company reduced the salaries paid to the guides that find the answers to the questions to about $0.10-$0.20 per answered question.
The company has raised an additional $12 million in funding. They will be using this investment to expand local and national advertising sales. The company has also opened an office in New York. So far the company has raised about $43 million in the last two years.
“This funding is a tribute to the strength of our service and the continuing rapid growth of the mobile search and advertising market, stated ChaCha CEO Scott A. Jones. “Our solid position in this space will help us focus on attracting more advertisers that want to reach today’s mobile generation, a group that is beginning to make buying decisions based on what they see on their mobile devices.”
Even though the company raised additional funds, ChaCha will be reducing headcount and overhead in order to save costs.
[via ChaCha press release]This article was written by Amit Chowdhry. You can follow me at @amitchowdhry or on Google+ at +AmitChowdhry