Having Raised $13M From Nokia Growth Partners, PubMatic Set For A Potential $1 Billion IPO

PubMatic, the programmatic ad platform for publishers, had raised $13 million investment led by Nokia Growth Partners and participation from existing investors

PubMatic IPO

PubMatic IPO

With a potential IPO of $1 billion on the cards, one of the largest India-US-based advertising platforms, PubMatic, is said to have raised $13 million in new funding in 2013. The investment was led by Nokia Growth Partners along with the existing investors August Capital, Draper Fisher Jurvetson, Helion Ventures and Nexus Venture Partners.

Founded in 2006, PubMatic is known for its automated platform that allows real time bidding of buying and selling advertising spots. The platform which allows publishers to directly connect with advertisers enables ads to be placed across websites, videos, and mobile apps to gain the biggest reach.

The company claims its revenue is up 118 percent in the last 12 months starting Sept. 2013; it plans to use the fresh investment raised to improve its platform and for international expansion. PubMatic’s CEO and Co-Founder Rajeev Goel also added that the investment will improve PubMatic’s “direct market access by plugging into the global NGP (Nokia Growth Partners) and Nokia presence.”

With this round of investment PubMatic has been able to raise $76 million since launch, which includes the $7 million investment raised by the combined entity of Komli & PubMatic in January 2008.

IPO of $1 billion by year end?

This could be the company’s last round of funding sine it has brought on Credit Suisse Group AG and Citigroup recently for the public offering. Reported by WSJ, The IPO, which could happen later this year, has valued the company at $1 billion.

The road for the IPO was recently followed by Rubicon Project Inc., which also operates an automated buying and selling platform, and had recently filed publicly for an IPO, seeking to raise $100 million in a deal led by Morgan Stanley and Goldman Sachs Group Inc.

Over the years the company has been adding enhanced capabilities to its RTB (Real Time Bidding) platform. Recently video RTB was included to its existing mobile and display capabilities, enabling publishers to deliver video ads across display, mobile, and tablet. It claims to enable publishers activate Instream, Inroll, Midroll, Postroll, and Companion ads through this solution.

Last year the company had launched PubConnect, which enables publishers to join together and establish controlled groups to create a private premium advertising channel across multiple publishers.

In an interview Rajeev shared that “The globalization of real-time bidding has taken place. But it has to be cross-platform and work as a single platform across mobile and video and whatever devices consumers are using.” With real-time bidding and programmatic advertising becoming a key part of the ecosystem, Pubmatic has been working on the cross-screen and multi-device strategy. Today the company cherishes to be the programmatic advertising platform for leading publishers with the likes of eBay to AccuWeather to Advance Digital.

However, the IPO path of PubMatic would be watched closely, at a time when other companies in the same space are struggling even after IPO – YuMe and Tremor Video.