Blog Post

Mobile Search Firm JumpTap Raises $26 Million For Expansion Plans; Bumps Up Total To $72 Million

Cambridge, MA.-based JumpTap, a white-label mobile search and advertising company, plans to announce today that it has raised $26 million in a fourth round of funding, bringing its overall total to $72 million. The latest round was led by Alliance Bernstein L.P., a publicly traded global asset management firm. All other existing investors, including General Catalyst Partners, Summerhill Venture Partners, Redpoint Ventures, Valhalla Partners and WPP, participated. JumpTap said the company is worth more following the round, and that the capital will go towards accelerating the company’s advertising efforts and expansion plans in Europe.

The large bankroll will surely help the company grow and compete against several companies, including brand name online search providers, such as Google (NSDQ: GOOG), Yahoo (NSDQ: YHOO) and Microsoft (NSDQ: MSFT), but also other white-label search companies, like Seattle-based Medio Systems. A report last week said the company laid off employees in certain areas (although JumpTap maintains that the report was untrue), and now it is unknown what will happen with Alltel (NYSE: AT), one of JumpTap’s main customers, since Verizon Wireless (NYSE: VZ) has acquired it and been reported as being close to securing a deal with Google and Medio for its search and advertising needs. Yesterday, I talked to Paran Johar, JumpTap’s CMO, who painted a rosy picture of a company that’s expanding, adding staff, and even close to announcing a deeper relationship with AT&T (NYSE: T). Here’s excerpts from our talk:

Current customers: JumpTap works with 17 carriers in nine countries, including AT&T, Alltel, U.S. Cellular, Virgin Mobile USA (NYSE: VM), Boost, Rogers, Bell Atlantic and Telefonica (NYSE: TEF). As far as whether JumpTap will continue to work with Alltel: “They don