The struggling site, which underwent a major layoff this summer, is shifting focus as it strives for profitability.
Mitu will continue creating content for millennial and gen-Z audiences, but it is taking steps to make it easier for brands reach these young Latinos. It also plans to cultivate a second source of revenue through the sale of lifestyle products.
The company said the $10 million funding round, which drew backing from new and existing investors, will enable MiTu to scale its commerce business, build out its programmatic advertising products and expand into new content areas.
Scannell had laid out an aggressive strategy to reach Latinos on new platforms, including on television and in theaters. But despite a compelling story — the company has grown 450% over the last four years reaches 100 million unique monthly viewers within a rapidly growing demographic of 58 million people in the U.S. — it struggled to raise money to fuel its growth ambitions.
Digital media companies have undergone layoffs and shifted focus, as they strive for profitability. In September, BuzzFeed shut down its in-house podcast team as it shifted focus to long-form video projects. Vox Media laid off about 50 people earlier this year, citing “industry changes.”
Now, Mitu has returned to its core business of digital media.