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Cloud Expo: Article

Zendesk Pulls in $60 Million

TechCrunch says an IPO is inevitable

Zendesk, the cloud-based help desk, has gotten $60 million in added financing split between $45 million in equity and $15 million in debt.

That gives it a total of $70.5 million in equity backing since it started in 2007.

Redpoint Ventures led the D round. New investors include Index Ventures, GGV Capital and Goldman Sachs. Existing investors Charles River Ventures, Benchmark Capital and Matrix Partners also kicked in.

Silicon Valley Bank is providing the debt financing.

The start-up wanted the money for global expansion, talent and development. It's rebuilding its widgetry from the ground up but will reportedly keep the old application around to placate customers who hate change. The remake will tie into third-party systems like Salesforce.

Over the past 15 months, San Francisco-based Zendesk has opened offices in London, Copenhagen, Melbourne and Tokyo.

It claims 100 million people in 140 countries get their customer services through the 20,000+ customers that integrate its portal with their front-facing web presence. It also claims its monthly recurring revenues have grown nearly 500% since the last financing was completed in November of 2010.

Zendesk has moved into mobile recently. Salesforce has a competitive customer service platform called Desk.com that has included both desktop and mobile support since it launched earlier this year. Zendesk is supporting iOS, Android, BlackBerry and Windows Phone.

Customers include Box and Yammer.

TechCrunch says an IPO is inevitable.

More Stories By Maureen O'Gara

Maureen O'Gara the most read technology reporter for the past 20 years, is the Cloud Computing and Virtualization News Desk editor of SYS-CON Media. She is the publisher of famous "Billygrams" and the editor-in-chief of "Client/Server News" for more than a decade. One of the most respected technology reporters in the business, Maureen can be reached by email at maureen(at)sys-con.com or paperboy(at)g2news.com, and by phone at 516 759-7025. Twitter: @MaureenOGara

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