Moloco Raises $150M Series C Funding

MOLOCO Secures $150 Million in Series C Funding

MOLOCO, a rapidly growing adtech company specializing in machine learning-powered mobile campaigns, has announced a new round of funding. The company has raised $150 million in Series C funding, led by Tiger Global Management, elevating its valuation to $1.5 billion.

This investment is in addition to a $20 million Series C round finalized three months prior, which initially propelled MOLOCO to unicorn status. According to co-founder and CEO Ikkjin Ahn, the additional capital was sought to accelerate growth in preparation for a potential initial public offering (IPO).

Company Overview and Growth

Established in 2013 and headquartered in Redwood City, California, MOLOCO’s total funding now reaches $200 million. The company reports consistent annual growth exceeding 100%, with a current annual net revenue run rate surpassing $100 million.

MOLOCO serves a diverse clientele, ranging from mobile developers with user bases under 100,000 to those exceeding one billion users. Some clients invest over $1 million monthly utilizing MOLOCO Cloud, the company’s demand-side platform (DSP).

Client Base and Services

Notable customers of MOLOCO include prominent companies such as King Digital, Playrix, and Netmarble.

The company provides services to mobile app developers across various sectors, including gaming, social networking, e-commerce, ridesharing, food delivery, and fintech. It assists these businesses in leveraging their first-party user data for marketing, monetization, and user acquisition initiatives.

Future Plans and Expansion

The newly acquired funding will primarily be allocated to research and development, product enhancement, and engineering efforts. This will expand the capabilities of MOLOCO’s machine learning engine to encompass a wider range of applications.

A portion of the funds will also be dedicated to expanding MOLOCO’s team, adding to its current workforce of 200 employees distributed across eight global offices: Silicon Valley, San Francisco, Seattle, London, Beijing, Seoul, Singapore, and Tokyo.

MOLOCO is also preparing to launch its Retail Media Platform, currently in beta testing, designed to enable e-commerce businesses to generate revenue through sponsored advertisements.

Founding and Core Technology

Prior to founding MOLOCO, Ikkjin Ahn served as a machine learning engineer at both YouTube (2008-2010) and Android (2010-2013). The company’s inception stemmed from observing the challenges faced by mobile businesses in achieving sustainable growth and monetization.

The founding team recognized that many mobile companies possessed unique data sets that traditional tools were unable to effectively utilize. Consequently, MOLOCO’s machine learning engine was developed to empower businesses to transform their first-party data into effective growth and monetization strategies.

The Evolving Landscape of Machine Learning

Over the past eight years, machine learning has become increasingly recognized as a vital component of the technology stack for mobile app developers seeking to effectively advertise and monetize their applications.

While some developers attempt to build their own machine learning algorithms, this can be resource-intensive. Others opt for outsourcing, which can compromise data transparency and control. MOLOCO aims to provide app developers with the ability to retain control over their data while accessing algorithms comparable in quality to those employed by industry leaders like Facebook and Google, which are identified as the company’s primary competitors.

Breaking Down Advertising Silos

According to Ahn, a significant portion of current advertising expenditure is directed towards platforms like Facebook and Google, primarily due to their sophisticated machine learning capabilities and ease of campaign scaling.

However, a key disadvantage for businesses arises from the inability to leverage first-party data – collected on Facebook or Google Ads – across other platforms, effectively creating isolated walled gardens.

MOLOCO offers a contrasting approach, granting businesses complete control and access to their data. Ahn emphasizes the belief that companies “should own it and utilize it as they see fit.”

Adapting to Privacy Regulations

This data ownership is increasingly crucial as consumer privacy laws become more stringent. Companies must prioritize the collection of their own data, anticipating reduced access from external sources.

Furthermore, ensuring the security of this data is paramount. MOLOCO’s platform and cloud service are specifically designed with security and privacy as core principles, allowing partners to integrate their data with confidence and rely on MOLOCO for full compliance.

Expanding MOLOCO Cloud

A portion of the recent funding will be allocated to the expansion of MOLOCO Cloud, which utilizes programmatic bidding on ad exchanges such as Google AdX and Twitter MoPub, extending its reach into new industries and geographical regions.

To maximize the return on advertising investments, MOLOCO Cloud analyzes key signals, including in-app purchases and user activities, to accurately measure campaign performance.

Ahn explains that these activities vary depending on the app type; for mobile games, they might include level completions or friend invitations, while ridesharing apps track ride orders and e-commerce apps monitor purchases.

He further highlights the adaptability of MOLOCO’s machine learning, stating its ability to automatically adjust to unique Key Performance Indicators (KPIs) and accommodate diverse data sets.

Enhancing E-commerce Revenue

MOLOCO’s Retail Media Platform is designed to help e-commerce businesses increase revenue through features like Recommended Products and Sponsored Ads.

The platform’s machine learning algorithms can provide real-time insights into a visitor’s likely next purchase, enabling intelligent recommendations that drive additional sales.

Ahn points to the substantial growth of Amazon’s advertising platform as evidence of the significant revenue potential offered by sponsored ads for e-commerce companies.

Investment Highlights

John Curtius, a partner at Tiger Global, stated in a press release regarding their investment in MOLOCO, “The amount of digital data being generated is increasing at an exponential rate, yet the tools available to effectively utilize this data remain limited.”

He continued, “We invested in MOLOCO because their machine learning algorithms are demonstrably among the most effective available, and the transparency and sophistication they bring to data-driven businesses are essential in the current landscape.”