Answers service ChaCha announced today that it has closed a $7 million E round of funding. The service lets users go online, call, or text questions on mobile phones and receive answers "within minutes" for free. The service has an iPhone app and lets people ask questions via Twitter as well.
This round of funding might be particularly significant for the company. "We believe this latest round provides ChaCha the cash required to reach profitability," says CEO Scott A. Jones.
Over the past four years, since its inception, ChaCha has raised about $52 million from prominent tech leaders, venture capitalists, and angel investors. The company says its text service passed Google in mobile text traffic in Q3 2009. According to ChaCha, when the company's mobile service launched in January 2008, Google SMS had nearly 100% of he mobile text search market, but ChaCha now has more text traffic, coming from users mostly under the age of 25.
That may be why ChaCha is considering itself the "#1 way for advertisers to reach teens and young adults on their mobile phones."
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