Foursquare, a location based social networking app for smartphones, has announced raising USD 35 Mn in a Series D funding round led by DFJ Growth and Capital Group’s SMALLCAP World Fund. As a part of the deal, Barry Schuler, Managing Director of DFJ Growth and former CEO of AOL, will join the company’s board.
The capital raised will be used to add to the new features that the company introduced this year such as its real-time recommendations feature, and expand its user base that currently is close to 45 Mn.
Foursquare is a free mobile application that allows registered users to post their location (check-in) at a venue and connect with friends. Users can check in via the app or by text message. Location is based on GPS hardware in the mobile device or network location provided by the application. The application is available for all major operating systems for smartphones including iOS, Android, and Windows 8 among others.
Users can connect their Foursquare accounts to their Twitter and Facebook accounts, which can update when a check in is registered. Each check-in awards the user points and sometimes “badges”.
The company released the new version of its app earlier this year, along with an advertising platform for local businesses. Further they have added a real-time push notification functionality that sends instantaneous alerts to users when they’re near something that might interest them.
These efforts by the company seem to have bolstered the faith of potential investors, as opposed to reports of it facing troubles raising funds at the end of last year. Earlier in April 2013, the company had raised USD 41 Mn as convertible debt financing led by Silver Lake Waterman growth debt fund and other existing investors. However with this latest round of funding, these investors have switched their stakes to equity in a move that signals confidence in the business model, the company said.
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