Mobile answer service ChaCha raises another $4M

chacha-logo2ChaCha, a service that answers questions sent from users’ mobile phones, has raised $4 million in a new round of funding.

Users can send in almost any kind of question — queries highlighted on the ChaCha homepage right now include “What is somnambulism?” and “How can I get a girl to dump her boyfriend and come to me?” — and they receive answers from other people. (The most interesting use I’ve seen so far was the election-related answer service ChaCha provided last fall.) Being human-powered, rather than completely automated, presumably leads to higher-quality answers, but it also raises questions about whether the company can control costs as it grows.

The new funding comes just six months after ChaCha announced a $30 million venture round. The Carmel, Indiana company hasn’t responded to queries about the round, so I don’t know who the investor is or why ChaCha needed to raise money so soon. The funding was first reported by TechCrunch, based on a regulatory filing with the Securities and Exchange Commission. According to the filing, the goal for the new funding is $5 million, and $2 million of the money is meant to pay off debt from Citigroup.

ChaCha’s competitors include Answerly, KGB, and, to a lesser extent, Aardvark.

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About the Author, Anthony Ha

Anthony is VentureBeat's assistant editor, as well as its reporter on enterprise technology, cloud computing, and tech policy. Before joining VentureBeat in 2008, Anthony worked at the Hollister Free Lance, where he won awards from the California Newspaper Publishers Association for breaking news coverage and writing. He attended Stanford University and now lives in San Francisco. Reach him at anthony@venturebeat.com. You can also follow Anthony on Twitter.

  • Ben Koo
    Aren't you missing their most obvious competitor, KGB?
  • Good point, I've added. KGB wasn't really on my radar before.