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Messaging app firm Kik raises $50m Series D from WeChat & QQ owner Tencent
Messaging app firm Kik Interactive, Inc. has raised $50 million Series D in a round funded solely by Chinese tech giant Tencent Holdings, Inc.
According to reports the new round values the company at a unicorn valuation of “north of $1 billion.”
Founded in 2009, Kik offers a chat app that lets users share content, find new friends, explore the web, and talk to official accounts.
While what the company offers sounds like any number of similar apps, Kik pitches itself towards younger users and has been successful doing so, with 240 million registered users and a claimed figure that 40 percent of all American teenagers use the app.
The Tencent deal is more than a simple venture capital investment, instead delivering a partnership between Kik and the Tencent-owned QQ and WeChat messaging services, both among the most popular chat apps in the Chinese market.
“Right from the start, Tencent was at the top of the list. As the maker of QQ and WeChat, it was clear they understood chat deeply, making them a great sounding board”, Founder and Chief Executive Officer Ted Livingston said in a post about the deal on Medium.
“They had significant success and resources, allowing them to have the patience required for Kik to pursue a long-term vision for a chat-based ecosystem. And with so much of their focus on winning China, they would support Kik running independently to win the U.S.”
The other benefits of the deal include support for Kik as they expand into new areas such as those provided by WeChat in China, such as gaming and payment services.
“Today, there are only five other companies in the world that see the future like we do: Tencent, Line, Facebook, Snapchat, and Telegram”, Livingston added. “One of them owns the largest internet market in the world. We couldn’t be more excited to partner with them as we run this race.”
Including the new round Kik has raised $120.5 million to-date. Previous investors Valiant Capital Partners, Foundation Capital, Laconia Ventures, Millennium Technology Value Partners,RRE Ventures, Spark Capital, SV Angel, and Union Square Ventures.
The company said it would use the new round to increase their headcount along with the continued development of the app.
Image via Kik
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