mParticle, which helps companies like Spotify, Paypal and Starbucks manage their customer data, is announcing that it has raised $45 million in Series D funding.
Co-founder and CEO Michael Katz told me that the company has benefited from broader shifts — like new privacy regulation and the shift away from cookie-based browser tracking — that increase brands' needs for a platform like mParticle that uses "modern data infrastructure" to deliver a personalized experience for customers without running afoul of any regulations.
As result, he said mParticle has nearly quintupled its revenue since it raised a $35 million Series C in 2017. (The company has raised more than $120 million total.)
"The challenges that we solve are universal," Katz said. "It doesn’t matter if there’s a small company or big company. Data fragmentation, data quality, consistent change in the privacy landscape, consistent change in the technology ecosystem, these are universal challenges."
Perhaps for that very reason, a whole industry of customer data platforms has sprung up since mParticle was founded back in 2013, all offering tools to help marketers create a single view of their customers by unifying data from various sources. Even big players like Adobe and Salesforce have announced their own CDPs as part of their larger marketing clouds.
When asked about the competition, Katz said, "The market has responded overwhelmingly by saying, 'I don’t want one vendor to rule everything for me.' Why be beholden to one suite of tools that's just an amalgamation of products that were built in the early 2000s?"
Instead, he argued that mParticle customers want "a best-in-breed combination of independent solutions that can be integrated seamlessly."
Getting back to the new funding — Arrowroot Capital led the round, with the firm's managing partner Matthew Safaii joining mParticle's board of directors. Existing investors also participated.
Katz said the funding will be spent in three broad areas: building new products, scaling its global data infrastructure and finding new partners. In fact, the company is also announcing a partnership with LiveRamp, through which mParticle customers can combine their first-party data with the third-party party data from Liveramp.
"We see this partnership with Liveramp as an opportunity to extend the surface area by which our customers can deliver highly personalized, privacy-friendly experiences," Katz said.