Marketing analytics startup Zeta Interactive recently closed a funding round of $125 million from the GSO Capital Partners and Franklin Square subsidiaries of Blackstone Group. The deal was stuck as a combination of debt refinancing and equity.
The Zeta Chairman and CEO David Steinberg admitted that the new investment was beyond their expectation, while talking to the media on the occasion. Zeta, the New York based company was founded in 2007 under the partnership of Steinberg and the ex- Apple CEO John Sculley. The company is currently helping enterprises to boost sales by identifying advertising and marketing opportunities and by utilizing the sales opportunities effectively.
Steinberg further claims that their unique strength lies in their data analytics capabilities, their ability to match customers with aspired products. They can figure this out by looking at customer who just finds the product in certain ads in social media and moves onto buying the product from stores like Wal-Mart. Their ability to marry analytics with multi-channel marketing has given promising results for its clients. Last year Zeta made $168 million in revenues and now serve over 720 customers including Coldwell Banker. Quaker Oats .T-Mobile, Traveler and US Airways. Steinberg says that the company which has remained positive in margins for the past three consecutive years is estimating a turnover of $200million for the year 2015.For the problem of reducing customer acquisition cost by 25% the company offers possibility of $50,000 test run.
Zeta is one of the fastest growing companies that focusses on the big data and marketing analytics platform says Brad Colman principal with GSO Capital Partners. In the past two years, Zeta bought marketing automation company Click Squared and the machine-learning division of Academy and is planning to expand its analytics capabilities. The source of valuation used for funding was not revealed by Zeta. However the deal takes the company into the prestigious club of private companies which is valued at a scale of more than $1 billion.
