Wednesday, July 9, 2008

Dimdim lights up $6M second funding round

By Christopher Calnan

Dimdim Inc., a Burlington software company that developed a free, open-source web conferencing tool, has closed a $6 million Series B round of venture capital financing.

The company garnered the funding from previous investors Draper Richards LP of San Fransisco, Index Ventures of Switzerland, and Nexus India Capital, which operates offices in California and India, CEO D.D. Ganguly said.

The funding increases Dimdim’s total venture capital investment to about $9 million, he said.

The 19-employee company, founded in 2006, plans to use the capital for marketing and development, Ganguly said.

Last year, Dimdim launched its first product, a collaboration tool to enable users to view information on each other’s browsers. The product, which is available in three versions, has attracted 250,000 downloads and 60,000 registered users, according to Ganguly, who served as vice president of product development for New York-based CA Inc. beginning in 2001, after it acquired Woburn-based Advanced Internet Management Inc., for which Ganguly was founder and CEO.

Dimdim offers a free basic service to users, but sells a “Pro” service and an “Enterprise” service. Customers include the United Nations and Ohio State University, Ganguly said.

The company would not reveal its top line, but said sales have been been better than projected. ”In terms of revenue,” he said, “we’re definitely ahead of the curve.”