OTT App, Tango Raises $280 Million from Investors - Signs Up 200 Millionth User
Published on: 20th Mar 2014
By: Ian Mansfield
OTT messaging app Tango says that it has raised an additional USD280 million in funding with the bulk of the money coming from China's Alibaba.
Alibaba pumped in USD215 million, with the additional $65 million coming from some of Tango's prior investors.
Tango has been built on a foundation of mobile messaging features which include free video and voice calling and texting. Over the past year, Tango has evolved into a next generation mobile messaging app that blends communication, social networking and content into a single platform.
Tango's evolution toward an all-in-one messaging, social and content platform has helped double registered users to 200 million compared to a year ago, and monthly active users has reached 70 million.
"Tango has exhibited tremendous growth because of its unique approach to combine free communications, social and content," said Joe Tsai, Executive Vice Chairman of Alibaba Group. "We were simply blown away by the vision and quality of the team at Tango and believe they have a disruptive way of looking at the mobile and messaging opportunity."
Since rolling out social networking features on Tango in July 2013, daily engagement has doubled. Hundreds of millions of songs have been shared between members since Tango introduced music through integration with Spotify in October 2013. In addition, the ability to play games online together with friends on Tango has driven an increasing amount of game downloads and activity.
"A whole new level of connection and sharing of experiences is available through messaging apps that fundamentally affects the way content gets distributed on mobile," said CTO and co-founder Eric Setton. "This round of funding will enable us to continue to innovate, hire the best talent, aggressively expand our content partnerships, and build a world-class platform as we go after what is truly a big opportunity."
Tango previously raised $87 million from Access Industries, DFJ, Qualcomm Ventures, Toms Capital and Translink Capital, as well as Bill Tai, Shimon Weintraub, Jerry Yang, Alex Zubillaga and others.
Including the new round, Tango has raised $367 million in venture capital financing to date.