Yammer, the so-called Twitter for businesses, has raised $25 million in third round of funding. The big investment comes as the service, which lets co-workers communicate with each other by sending out short messages detailing what they are working on, is taking off. Yammer says more than 100,000 organizations are using its product, up from 60,000 in February, when it raised $10 million in a second round. It now claims more than 1.5 million corporate users, meaning that the new funding round comes out to about $16.66 per user.
A basic version is free, while businesses can pay between $3 and $5 per user per month for additional features. In late September, the company also added a host of features, including polls and event invites, which it said would transform it from primarily a microblogging service to a social network. (We’ve been happily using it since the start of the year).
Yammer says it will now use the new cash to triple the size of its engineering team to 120 and “significantly grow” its sales operation; it’s also set to open offices for the first time in Europe and Australia. The company currently has 80 employees.
As part of the funding round, it’s bringing in several new executives, including David Stewart, a senior director of product at Playdom as its VP of product management, and Mark Woolway, who led PayPal’s IPO process a decade ago, as its VP of corporate affairs.
The new funding brings Yammer’s total backing to $40 million since its launch in September 2008. U.S. Venture Partners led the funding round; previous backers Emergence Capital, Charles River Ventures and Founders Fund also participated.