Mobile Search Firm ChaCha Raises $4 Million

Jul 28, 2009

Mobile search firm ChaCha has raised $4 million of a $5 million round, according to an SEC filing. $2 million of the round is being used to pay back a loan from Citigroup. In March, ChaCha raised $12 million in a round—which it said it would use to expand its sales activities and to open a New York office. It also said it was cutting expenses and laying off 25 employees to “preserve its cash.” That round was initially supposed to be as large as $30 million. ChaCha also raised $16 million in 2007 from investors, including CEO Jeff Bezos and former Compaq CEO Rob Canion.