Messaging app Kik has joined the so-called unicorn club with a $1 billion valuation in its latest round of funding. The Waterloo, Ontario-based company has raised $50 million from Tencent, the Chinese Web portal company which owns WeChat, another messaging service.
Kik has been a quiet but formidable competitor in the messaging wars, as Snapchat moves into media with its Discover platform and Facebook’s Messenger app expands its capabilities to include customer service. The company aspires to imitate the success of Asian messaging app companies like WeChat and KakaoTalk, which have become massive hubs for everything from commerce to media. Kik has 240 million registered million users. The company does not disclose how many of those users are active.
Earlier this year, Kik hired Qatalyst Partners to explore strategic options, including a potential sale. Kik CEO Ted Livingston says he made a list of every single company that Kik could potentially partner with, either through a sale or an investment, and imagined the best-case one-year scenario of each. He landed on Tencent, because he wants to mimic the company’s success with WeChat.
“They, more than anyone in the world, have accomplished in that market what we want to accomplish here in the US,” he said. It helped that Tencent was open to an investment rather than an outright acquisition. “It would let us stay independent and stay hungry,” he says. Further, he appreciated Tencent’s long-term view. “Financially, they could afford patience,” he said. “We don’t want to just build a chat app, it’s the whole chat ecosystem. Other partners would take a short term view.”
Kik has only begun to monetize its users, which consist mostly of teenagers in the U.S., through advertising and digital currency. Users can earn “Kik Points” by watching ads or interacting with brands, which they use to buy on digital stickers. Brands have accounts on Kik which interact with users; they can pay Kik to promote their accounts. So far 16 million users have chatted with 80 branded accounts.
This model follows that of Kik’s new partner, WeChat. Livingston says more “official accounts” are added to WeChat every day in China than there are websites being created to the Internet. Kik’s plan to become the “WeChat of the West” now includes an informal partnership with the actual WeChat.
WeChat and other popular messaging apps, including like Line and WhatsApp, have failed to break into the American market because there is no demand for free SMS messages — they’re already free or very inexpensive, thanks in part to Apple’s iMessage. But Kik broke in because it allowed people without a phone number, namely teens using iPod Touch devices on Wifi connections, to send messages. Now, Livingston says, Kik can thrive because of its network effects. “If you ask people why they use Kik, the number one answer, and there is no number two answer, is that it’s what their friends use,” he says.
Kik previously raised $70.5 million in venture funding. The company plans to use the investment to double its 100-person team over the next year.
An active startup investor, Tencent also participated in Snapchat’s $80 million Series B round of funding.
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FAQs
The investment earned the company a billion dollar valuation. Company CEO Ted Livingston stated Kik's aspirations to become "the WeChat of the West" and said that attracting younger users was an important part of the company's strategy.
What is Kik mostly used for? ›
Kik is primarily a messaging app, but it also has internal apps, including Flirt!, a Tinder-like experience that serves up potential matches to the user—encouraging them to swipe for their preferred matches. The inclusion of an internal dating app creates room for sexually charged dynamics.
Does anyone still use Kik? ›
Kik's daily active users is an impressive 2.5 million people worldwide. Kik's growth in people logging into the app every day has been attributed to people making it their number one messaging platform.
Why use Kik instead of texting? ›
Connecting with strangers online isn't anything new. But what makes Kik unique is the anonymous nature of the app. The app asks the user for their real name and email but works with a fake name and does not require a phone number. Essentially, users who can be whoever they want.
Is Kik monitored by the police? ›
Law enforcement officials need permission through a search warrant to search someone's phone or track their activity through the app, but many apps including Kik Messenger archive activity for a period of time.
Why is Kik no longer available? ›
The company will focus its remaining resources entirely on growing its cryptocurrency, Kin, the subject of a recent lawsuit filed by the Securities and Exchange Commission. The SEC sued Kik in June for raising about $100 million in an ICO, or initial coin offering, without properly registering the offering.
Is Kik a good or bad app? ›
One of the most popular messaging apps among kids is Kik Messenger app — but it's also one of the most dangerous. The app encourages interaction with strangers, makes anonymity very easy, and provides little protection for kids. All of this adds up to trouble, and parents need to know what kids can encounter on Kik.
Is Kik mostly bots? ›
There are a lot of bots on Kik because Kik allows people to release bots onto Kik and then they make money if people click on the bots links and even more if they actually buy the product. Kik even has some of its own official Kik bots running around like Samantha Huggins and her cousin Sammy.
Where is Kik used the most? ›
kik.com Website Traffic by Country
See the global distribution of visitors to your competitor's website and start tapping into overlooked markets. Kik.com's core audience is located in United States followed by India, and United Kingdom.
What do people use now instead of Kik? ›
WhatsApp. WhatsApp is one of the most popular chat apps on the planet. It counts over 1 billion active users and offers powerful communication features like voice calls and video calls. WhatsApp is definitely one of the best options if you are looking for a stable solution for personal use or for business.
See Who They Talk to
Reason with your child and tell them about the dangers of Kik and other anonymous platforms so they understand they can only use it if they let you see who they're messaging. Kik is not safe to send pictures or to message others anonymously.
Does Kik delete inactive accounts? ›
Does Kik delete inactive accounts? In its terms of service, Kik says it might terminate an account or reclaim usernames that have been inactive for at least three months.
What should you not do on Kik? ›
Don't post content involving threats, planning, or incitement of physical harm, violence, or murder. Kik prioritizes user well-being and does not tolerate content that encourages self-harm, suicide, or any dangerous behavior.
What is the Kik controversy? ›
Children Exposed to p*rnography and Harmful Content
Another danger facing children on Kik is exposure to hardcore p*rnography and other harmful content. Bark's 2022 Annual Report found that, of all apps and social media platforms, Kik was flagged the most frequently for severe sexual content.
Does Kik use your phone number? ›
People you've talked to on Kik can only see your display name, username and profile picture. They can't see your email address, phone number, or birthday :) Unlike other messaging apps, Kik uses your username rather than personal information to connect you with other users.
How much is a Kik diamond worth? ›
The creators convert these gifts into diamonds, and then they convert the diamonds into dollars. And so a diamond is worth 5 cent.
Who is Kik owned by? ›
After a tumultuous few weeks, the Kik app has officially been acquired by US-based holding company MediaLab. Terms of the deal were not disclosed. Kik made the announcement in a blog post, stating that a deal had been made between Kik Interactive and MediaLab to acquire the Kik Messenger app.
Is Kik being investigated? ›
The investigation deemed Kik "the defacto app" for child predators. Kik is also named in federal cases against four Tri-State area men who were convicted in 2022 of charges related to the distribution and receipt of child sexual abuse imagery.
