Messaging App Wire Secures $21 Million Funding

Wire Secures $21 Million in Series B Funding

Wire, a messaging application and service prioritizing end-to-end encryption, has successfully completed a $21 million Series B funding round. This investment was spearheaded by UVC Partners, signaling strong confidence in the company’s trajectory.

Shifting Focus to the Enterprise Market

The company articulated a strategic pivot towards the enterprise sector several years ago, and this direction remains central to its operations. While initially launched as a consumer-facing app, Wire encountered challenges in achieving the massive user base seen by competing messaging platforms.

Core Functionality and Security Features

The Wire application facilitates secure communication through text messaging, photo sharing, video exchange, and voice messaging. Users can also initiate video calls and transfer files.

It supports both individual conversations and group interactions within dedicated rooms. Crucially, all communications are protected by end-to-end encryption by default.

Uncompromising Data Privacy

This encryption ensures that Wire itself cannot access, decrypt, or disclose user conversations, even if legally compelled or targeted by malicious actors. Furthermore, the application’s source code is publicly available for review on GitHub, promoting transparency.

Strategic Expansion and Funding

In 2019, Wire established a U.S.-based holding company to facilitate fundraising efforts. This move was intended to bolster its focus on enterprise clients and establish a sustainable path to profitability.

CEO Highlights Enterprise Growth

“Three years ago, we had no revenue and no customers,” stated Morten Brogger, CEO of Wire. “Today, we are announcing a Series B round and have built a recognized enterprise brand, something I am incredibly proud of.”

Avoiding Data Monetization

Brogger emphasized the importance of a revenue-generating enterprise model, contrasting it with the data monetization practices of platforms like WhatsApp. He believes this approach safeguards user privacy.

Impressive Customer and Revenue Growth

Wire currently serves 1,800 customers, representing a nearly 50% increase over the past year. The company prioritizes securing large-scale clients, including major corporations and governmental organizations.

Notably, five G7 governments are presently utilizing Wire’s services. The company experienced a tripling of revenue throughout 2020.

Innovation in Real-Time Collaboration

Beyond its core messaging capabilities, Wire is actively developing enhancements to its conference call and real-time interaction features. The company anticipates a convergence between messaging apps and real-time collaboration tools.

Future Outlook and Scalability

With a team of 90 employees, Wire possesses significant potential for growth and continued innovation. The company is poised to expand its offerings of end-to-end encrypted services within the collaboration space.