Text messaging co Zlango raises $3m

Benchmark Capital led the company's second round.

Israeli start-up Zlango Ltd. has raised $3 million in its second financing round. Benchmark Capital led the round, joined by other venture capital funds and private investors.

Zlango has developed next-generation text-based messaging that incorporates icons in the message. The company has raised $13.5 million to date, not including the current round, from Benchmark, Accel Partners, Brooks-Keret Private Investors Group, Israel Angels Management Ltd., and private investors.

Zlango visually-enhanced text messaging solutions and services support more than 20 languages and 500 handset models.

Zlango CEO Roni Haim told "Globes", "We intend to use the proceeds to expand our marketing efforts in our current markets as well as in new countries. We also intend to continue developing Zlango's support for next-generation mobile telephones." He added that the company would hold more financing rounds in the future.

Haim replaced Zlango founder Yoav Lorch as CEO in April. The Tel Aviv-based company has 33 employees, mostly in R&D. The company's core markets are in Asia and Europe, and its customers include Telecom Italia SpA (NYSE: TI; Milan: TAT), Portugal's TMN SA, and India's Aircel Ltd.

Zlango's business model is based on revenue from mobile operators on the basis of active users of the service, as well as use of its proprietary infrastructure. The company provides round-the-clock support services.

Haim said, "Zlango is a serious and energetic company. We're determined and we want to succeed, and success is defined as more and more users worldwide."

Benchmark Capital partner Michael Eisenberg said, "The present financing round is a vote of confidence in the company and its new management, which has already led it to very strong achievements," adding, "The company is on the verge of an extraordinary breakthrough."

Published by Globes [online], Israel business news - www.globes-online.com - on November 19, 2009

© Copyright of Globes Publisher Itonut (1983) Ltd. 2009

Twitter Facebook Linkedin RSS Newsletters גלובס Israel Business Conference 2018