ChaCha Raises $7 Million More

TechCrunch points to an SEC filing that shows ChaCha as having raised another $7 million. The "mobile answers" service recently sought to diversify its model, which is SMS advertising, with coupons. Apparently the coupon effort, right now limited to ChaCha's home market of Indiana has been popular.

While coupons is a very crowded segment it's also highly popular with consumers. It's one of the forms of mobile advertising that consumers don't object to in the abstract. (There's a difference between survey responses and consumer behavior in practice; however consumers tend to object to ads on mobile devices generally.)

Not long ago, the company tied coupons to the mobile service's new "C3 on demand coupon service" allows users on the go to easily text in a request for coupons by business type or name and receive several offers back from ChaCha on their cell phone. For example, customers may text "C3 pizza" or "C3 tanning" to 242242 and receive offers for pizza or tanning. Or, they may text in "C3 Cabo Sun" to see all of the current offers from the business Cabo Sun. Additionally, ChaCha offers a simple "directory assistance" free text-based business category search. Users may simply use "biz" followed by a business type or category on their cell phone to find a listing of names, phone numbers, and addresses of local businesses. For example, customers may text "biz pizza" or "biz clothing" to 242242 and receive a listing of these businesses in the area. 

The company has struggled financially because it was somewhat ahead of the market. However, getting into coupons and the rising interest in mobile marketing may help ChaCha in 2010. 

With this latest cash infusion the company has reportedly raised $70 million (approx.) over several funding rounds.