WordPress: Automattic’s fund-raising hits $160 million

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The company involved in developing the open source CMS has raised funds in excess of expectations. The firm is now valued at $1.6 billion.

Automattic, which develops and distributes WordPress and its extensions, has just closed a financing round that raised $160 million, an amount that surpasses the expected figure. With the buttressed resources that it generated, this capital increase signifies a ramp-up in the company’s competitiveness.

On his blog, Matt Mullenweg, Automattic CEO, explains that those funds will be used to accelerate the company’s growth, with a particular focus on improving mobile and launching a new version of WordPress.com (the SaaS version of WordPress), as well as on Jetpack, an open source plug-in that enables users that have already installed the WordPress platform to take advantage of the functionalities of WordPress.com.

The primary investor in this Series C round was Deven Parekh of Insight Venture Partners. It also included Chris Sacca and Endurance, along with a special vehicle created by True Ventures to shore up its investment. The two secondary investors last year, Tiger Global Management and Iconiq, also participated in the fund-raising.


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