PubMatic raises $45 million in Mezzanine Financing led by August Capital

BANGALORE: PubMatic the digital media platform for publishers, has raised $45 million in mezzanine financing. California-based August Capital, is leading the financing with participation from existing investors including Draper Fisher Jurvetson, Nexus Venture Partners, Helion Ventures and Silicon Valley Bank.

The funds will be used to continue PubMatic's targeted acquisition strategy and strengthen the company's balance sheet. Over the past 18 months, PubMatic has solidified its position via organic development, partnerships, and acquisitions.

"The additional funding will further our mission of making it easier for buyers and sellers of advertising to work together," said Rajeev Goel, co-founder and CEO of PubMatic. Mezzanine financing is a hybrid of debt and equity financing that is typically used to finance the expansion of existing companies. It is basically debt capital that gives the lender the rights to convert to an ownership or equity interest in the company if the loan is not paid back in time and in full.

"The advertising automation space is vibrant with huge growth potential," said Eric Carlborg, a partner at August Capital who joined the PubMatic board of directors. Carlborg is a former CFO of Provide Commerce, with experiences as member of the board of directors at Blue Nile Inc, an online specialty retailer of fine jewelry and Big Lots, Inc. a fortune 500 retail corporation.

August Capital which manages $1.3 billion in capital has invested in technology companies including Atheros, Postini, Splunk, and Seagate as well as digital media companies such as Adchemy, SAY Media and Adara Media.