RealTime IT News

Interelate Raises $45 M in Round Four

CRM solutions provider Interelate, Inc. announced raising $45 million in its fourth round of funding. Boston-based Great Hill Partners managed and led the round with additional investments from The Goldman Sachs Group, Inc. (NYSE: GS); Carlson Marketing Group; Dell Ventures; C.E. Unterberg, Towbin; and William E. Simon & Sons. It plans to use these funds to expand its business.

The Eden Prairie, MN-based company currently has 45 customers for its hosted customer intelligence solutions, including Nissan, Holland America Line, GMAC, Proctor & Gamble, and ING. Interelate helps clients develop profitable relationships by delivering customer acquisition, retention, cross-sell, optimal pricing and up-sell capabilities.

Interelate tailors its marketing infrastructure services to the retail, travel and leisure, financial services and telecommunications industries. According to Gartner Group, the market for CRM services is expected to reach $40 billion by the end of 2001.

"Interelate offers a powerful turn-key marketing infrastructure to help its clients build profitable customer relationships," said Stephen F. Gormley, managing partner of Great Hill Partners, who will join Interelate's board of directors along with colleagues Patrick D. Curran and Vikram Mansharamani. "We evaluated approximately 100 hosted solutions providers over the last six months. Interelate clearly emerged as the most promising next-generation business service provider."

This $45 million round comes in addition to $30 million in private funds previously raised by Interelate, bringing the total investment in the company to $75 million.