IPO-bound digital ad platform Outbrain raises $200 million in funding

(Reuters) - Web recommendation platform Outbrain Inc, which filed for an initial public offering in the United States late last month, said on Tuesday it had raised $200 million in funding from Boston-based investment manager Baupost Group.

The company, however, did not disclose a valuation at which the new capital was raised.

New York-headquartered Outbrain partners with publishers and marketers in more than 55 countries. Its technology connects advertisers to audiences to grow their business through recommendation feeds on websites.

Founded in 2006, Outbrain has offices in 18 cities around the world. It calls itself a “mobile-first company” and generated more than 66% of its revenue from mobile platforms last year, it said in its IPO filing earlier.

Its rival Taboola Inc agreed to go public through a $2.6 billion blank-check merger in January this year.

In its IPO prospectus, Outbrain said it had recorded $10.7 million in net income for the three months ended March 31 this year, compared with a $9.6 million net loss a year earlier. Revenue in the same period jumped 29% to $228 million.

Reporting by Niket Nishant in Bengaluru; Editing by Maju Samuel