US-based local services listing platform Thumbtack has raised $125m in a series E round featuring Google Capital, the growth equity arm of internet company Google, the New York Times reported today.
The round, which valued Thumbtack at $1.3bn, was led by investment management firm Baillie Gifford and included investment fund Tiger Global Management and venture capital firm Sequoia Capital.
Founded in 2008, Thumbtack operates a platform that enables local merchants and services to advertise their skills online. Merchants pay Thumbtack for introductions to interested customers who are then sent quotes and can decide whether to follow through with the transaction.
The company has reportedly increased the number of professionals on the platform tenfold from 2013 to 200,000. It plans to use the series E capital to introduce services for small businesses covering invoicing, payment, scheduling and customer management to its platform.
The round follows a $100m series D led by Google Capital and backed by Sequoia, Tiger Global and Javelin Venture Partners that closed in August 2014 at a $750m valuation.
Marco Zappacosta, co-founder and CEO of Thumbtack, told the Times: “We are at the stage where we need to think about having a permanent capital base.
“The venture investors do have to exit sometime and we want to invite in additional, long-term stakeholders that can support the sort of big, independent business we want to build.”
Thumbtack has now raised about $275m in total, with its pre-series D funding coming from backers including Sequoia, Tiger Global, Javelin, Draper Associates, MHS Capital and a host of angel investors.