The 6 year old California-based company, on Tuesday, launched its $ 100 million IPO to raise funds for working capital and general corporate purposes. ReachLocal’s target clientele are small and medium businesses. Owing to the global slowdown, online advertising saw a massive drop. However, in recent times, online advertising seems to be picking up faster than print or broadcast media.

Based on this fact, ReachLocal is setting out to make online advertising more affordable to smaller players who rely on more traditional means of publicity and miss out on target audience on the Internet.

Some of the funds that the company expects will be generated from the IPO, will be allocated towards the payment of a deferred obligation of $6.1 million for the balance 53% ownership of ReachLocal Australia.

ReachLocal reported revenue of $143.3 million in the nine months ended Sept 30, up 37.5 percent from the same period a year ago. It reported net income of $11.7 million compared with a net loss of $4.6 million a year ago.

The company's shareholders include funds affiliated with VantagePoint Venture Partners, Rho Ventures and Galleon Group LLC. Underwriters for ReachLocal include J. P. Morgan and Bank of America Merrill Lynch.