Flurry raises $7M for mobile analytics services expansion

Mobile analytics firm Flurry said today it has raised $7 million in a second round of funding to fuel its services expansion.

The deal comes in the wake of last month’s announcement that the San Francisco-based company would merge with Pinch Media, a New York media analytics firm.

Flurry launched its analytics service for mobile platforms such as the iPhone in January, 2009. The company now tracks over a billion end user app sessions per month on the iPhone, iPod Touch and Android cell phones. It has more than 15,000 developers.

The company is monetizing its analytics information through AppCircle, a platform that analyzes the tastes of an app user and recommends other relevant apps. If the user purchases a recommended app, Flurry gets a share of the revenue. This platform is important for developers who often find their apps going unnoticed on the iPhone, where more than 100,000 apps are available. The company says 130 developers are using AppCircle.

InterWest Partners led the funding round and was joined by existing investors Draper Fisher Jurvetson, Union Square Ventures, First Round Capital and Draper Richards. InterWest general partner, Doug Pepper, also joins the Flurry board of directors.

Simon Khalaf, chief executive, said in an interview that the company will use the funds to build new services that increase its revenues. It will hire new employees and expand its infrastructure. Khalaf said the company started raising money in August, 2009. But it put that on hold as it merged with Pinch Media.

Previously, Flurry had raised $1.5 million and Pinch Media had raised $1.8 million. The company has 18 employees and plans to add eight to 10 people in two months. Rivals include Medialets and Mobclix.

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