Messaging App Reaches Unicorn Status with $170M Series C Funding

IRL Secures $170 Million to Build a “WeChat of the West”

The social calendar application, IRL, has been actively developing a messaging-centric social network. Founder and CEO Abraham Shafi envisions it as a Western equivalent to WeChat. Following substantial growth during the pandemic and a continued expansion into social networking features, including group chat functionality, IRL has announced a $170 million Series C funding round. This round is spearheaded by SoftBank’s Vision Fund 2.

Investment Details and Previous Funding

In addition to SoftBank, Dragoneer participated as a new investor in this oversubscribed funding round. Existing investors, including Goodwater Capital, Founders Fund, and Floodgate, also contributed. To date, IRL has successfully raised over $200 million in funding.

From Real-World Events to Online Experiences

Initially, the startup focused on facilitating the discovery of real-world events. However, the COVID-19 pandemic drastically altered this landscape. Rather than falter, IRL swiftly adapted by prioritizing the discovery of online events.

During lockdowns, the app became a hub for users seeking virtual experiences. These included livestreamed concerts, esports competitions, and Zoom-based gatherings.

Expanding Event Accessibility

IRL concentrated on integrating popular online events from platforms like Live Nation, Twitch, YouTube, and TikTok. This broadened the app’s accessibility, extending beyond individuals with the resources to attend physical events.

This shift also attracted a younger demographic, a generation less engaged with Facebook. Shafi explains that this group primarily utilizes platforms like Snapchat, Instagram, and TikTok, but lacks dedicated tools for group and event organization.

Enhancing Social Networking Capabilities

Earlier this year, IRL significantly enhanced its social networking features. A new platform launch introduced user profiles, group chat support, event joining capabilities, and personalized recommendations. This evolution transformed IRL from a simple event-discovery tool into a more comprehensive social network, functioning seamlessly across web and mobile.

Current User Base and Growth

Currently, IRL boasts 20 million total users, with 12 million monthly active users. While these numbers are modest compared to established social networks, they reflect a consistent growth trajectory. The company reports a 400% increase in growth over the past 15 months, even amidst the challenges posed by the pandemic’s impact on real-world events.

The Return of In-Person Events

With the gradual return of in-person events, particularly in regions like California, IRL is poised to reconnect people both online and “in real life,” aligning with its core name and mission.

This includes facilitating connections around events, not just within existing friend groups, but also by helping users discover new communities locally or on campus.

Investing in the Events Economy

IRL intends to allocate a portion of its funding to revitalize the events economy. The company plans to designate funds for each city, supporting individuals in organizing real-world events. Specific details are still under development, but the goal is to help “bring culture back” to cities as they reopen.

International Expansion and the Olympics

IRL also aims to expand its international reach, potentially starting with events centered around the Olympics. This expansion is contingent on the Games proceeding without further delays or cancellations due to COVID-19.

Strategic Fundraising Decision

Shafi notes that IRL hadn’t actively sought funding, but responded positively when approached by investors. He emphasizes the importance of raising capital strategically, “not when you have to, but when it makes sense.” The company’s rapid scaling and server demands made the investment a logical step.

Leveraging Expertise from New Investors

The addition of SoftBank and Dragoneer brings valuable experience in scaling large social networks. SoftBank’s portfolio includes TikTok owner Bytedance, while Dragoneer has invested in Snap. IRL already maintains a strong relationship with TikTok, integrating with its “Login Kit” for user authentication.

Deeper TikTok Integration

IRL is planning an even more comprehensive integration with TikTok, a development that particularly attracted SoftBank’s attention. Shafi remains tight-lipped about the specifics, promising further announcements in the coming weeks.

He highlights the growing trend of TikTok users linking to IRL group chats and events through their profiles, seeking deeper connections. He notes that while Instagram excels in messaging, TikTok is still developing its capabilities in this area.

Monetization Strategies Beyond Advertising

IRL is exploring monetization strategies that extend beyond traditional advertising. The company sees potential in facilitating paid events, not necessarily reliant on influencer marketing. A recent pilot program involving paid group chats demonstrated user willingness to pay for access to specialized resources, such as calculus homework help.

Furthermore, IRL recognizes a demand for tools that assist groups and clubs in managing membership dues and fees, as well as for events that fall outside the scope of larger ticketing platforms like Ticketmaster or Eventbrite.

Focus on Human Connection

Shafi believes IRL’s success hinges on its ability to execute its vision. He asserts that most social networks prioritize media consumption over fostering genuine connections. “What we’re building isn’t the media part of social, it’s the real human interaction part of social, because that hasn’t been paid attention to as much.”

“We’re building a messaging social network,” he reiterates, drawing a parallel to WeChat, the dominant messaging and social network in China. “The big vision that we’re going for is building the WeChat of the West — a messaging super social network. And it starts with people organizing groups and doing things together.”

Future Plans and Team Expansion

With the new funding, IRL plans to invest in product development, international expansion, and its Creator and Culture Fund. The company intends to grow its remote team from 25 to 100 employees by the end of the year.

“People are increasingly seeking more in-person social connections and are looking to share meaningful experiences together,” stated Serena Dayal, director at SoftBank Investment Advisers. “As an innovative event-based social network, IRL sits at the intersection of group and event discovery, social calendaring, and group messaging, enabling people to do more together. We are excited to partner with Abraham and the IRL team to support their ambition of helping everyone deepen their connections to friends and family.”