One of the heavyweights of social media management is set to get even bigger after raising a significant amount of funding.
Hootsuite has secured $50m from Canadian bank CIBC Innovation Banking to expand on its already hefty userbase of 16 million.
The funding will also be used to expand its business in Asia Pacific, Europe and Latin America. Hootsuite also plans to add more tools to serve the needs of specific industries like financial services, government and healthcare.
“This financing is a testament to the strong fundamentals behind Hootsuite and our ongoing commitment to innovation and growth as the clear leader in social media management,” said Greg Twinney, CFO of Hootsuite.
“The additional capital will help us scale even faster to bring the most innovative products and partnerships to market globally and help our customers strategically build their brands, businesses and customer relationships with social.”
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Hootsuite was founded in 2008 by Ryan Holmes, and much of its startling growth can be attributed to its freemium model – which enables users to manage their social media accounts via a stream-based interface without paying a dime.
Converting those customers into dollars has been one of the company’s toughest challenges, but a more comprehensive offering of major social networks (Instagram being the most recent to join the stable) has hurried that process along.
A series of acquisitions has also been key to bottom-line growth. Adding third-party social media tools such as AdEspresso, Kenshoo and Mediative to its roster has enabled Hootsuite to bulk up its offering, becoming a more comprehensive product in the process.
According to TechCrunch, the last time Hootsuite raised funds was back in 2014, when the company had 10 million users and was valued at $1 billion. It’s a safe bet it’s worth more than that now, and the latest injection of cash should consolidate its position as the world’s largest social media relationship platform.