Automation services provider ActiveCampaign raises $240 million at $3 billion valuation

Akanksha Rana and Sohini Podder
·1-min read

By Akanksha Rana and Sohini Podder

(Reuters) - ActiveCampaign, a cloud software platform that provides automation tools, said on Wednesday it had raised $240 million in fresh funding, valuing the company at more than $3 billion.

The company said the Series C funding round was led by investment firm Tiger Global with new investment from Dragoneer, while existing investors including Susquehanna Growth Equity and Silversmith Capital Partners also participated.

The latest round brings the total funds raised so far to $360 million, the company said, adding that it plans to use the proceeds to invest in product development and global expansion.

ActiveCampaign had only 15 people in 2016, said Jason VandeBoom, the company's founder and chief executive officer, but now the startup employs more than 850 people and caters to at least 145,000 customers.

The company plans to scale up to 1,000 employees this year.

VandeBoom said the business had grown rapidly in the last five years, but going public is "not something that is on top of (my) mind."

Founded in 2003, Chicago-based ActiveCampaign is a platform that provides tools for firms to automate processes such as marketing and sales. This includes many human tasks, such as replying to emails.

The company counts Netherlands-based transportation app Sneleentaxi and Party Headphones, which provides silent disco rentals, as its customers.

(Reporting by Akanksha Rana and Sohini Podder in Bengaluru; Editing by Amy Caren Daniel)