Blackstone Group Inc. is betting on the continued growth of mobile advertising with a majority investment in Liftoff Mobile Inc.
The New York-based investment firm’s roughly $400 million bet on Liftoff is the largest investment the Redwood City, Calif.-based company has received to date, according to a person with knowledge of the company. The investment dwarfs the roughly $12 million that Liftoff has raised since its founding in 2012.
Liftoff uses artificial intelligence to develop advertising for marketers of mobile applications, helping them attract more users and track the performance of those efforts, among other services. Its customers market apps in sectors such as gaming, entertainment, travel, dating, finance and shopping.
The Blackstone investment, which is expected to close early next year, would help Liftoff increase its market share and expand geographically, including reaching deeper into the Asia-Pacific region, said Mark Ellis, Liftoff’s chief executive in an email response.
Restrictions imposed around the world to combat the spread of Covid-19 have driven more people to use mobile apps for a wider set of services, including grocery and food delivery, entertainment, remote learning and even socializing, Mr. Ellis said. That has induced a growing percentage of people to adopt practices that they would not have considered previously, he added.
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