Yope: The Private Group App Capturing Gen Z's Attention

Yope Secures $4.65 Million Seed Funding Amidst Rapid Growth

The market is saturated with photo and video applications geared towards young adults, often incorporating social networking features. Consequently, platforms demonstrating significant engagement with the 18-25 age demographic frequently attract investment, as stakeholders seek the next breakout success akin to Instagram or TikTok.

Yope's Impressive User Metrics

Photo-sharing application Yope, which focuses on enabling image sharing within private groups, has reported substantial user growth. The platform currently boasts 2.2 million monthly active users and 800,000 daily active users.

Notably, Yope has experienced a 30-fold increase in its user base over the past six months.

A key indicator of the app’s appeal is its day-seven retention rate, currently standing at 40%. This signifies that 40% of new users continue to engage with the application seven days following installation.

Seed Round Details and Investors

This positive traction has spurred significant interest from venture capital firms. TechCrunch has confirmed that Yope’s parent company has successfully closed a seed funding round of $4.65 million.

The valuation established during this round is $50 million.

Goodwater Capital led the investment, with participation from Inovo VC and Redseed. Angel investors also contributed, including Jean de La Rochebrochard, Greg Tkachenko (founder of AI factory, acquired by Snapchat in 2020), Dima Shvets (co-founder of Reface and a16z scout), and Andrei Tkachenka (former Google researcher).

Industry Buzz and Comparisons

According to one source speaking with TechCrunch, Yope is generating considerable excitement within the investment community.

Some observers have even optimistically likened the app to “the new Instagram,” highlighting its potential for disruption.

The Application

The Yope application features a straightforward design. Users can either capture a photograph directly within the app or select an existing image from their device’s gallery. This image is then shared to a group chat, either one they have joined or created themselves.

Within these groups, users can view images contributed by other members, react to the pictures, and engage in conversation. A unique element is the “wall” feature, which utilizes machine learning to creatively combine submitted images into a continuously expanding photo collage.

Inspired Features

To encourage continued use, Yope incorporates elements found in other popular social networks. A lock screen widget displays the latest photos from a chosen group, providing quick access to shared content.

A streak system motivates users to consistently contribute. Furthermore, a “recap” function presents a slideshow of shared images, mirroring similar features in applications like Google Photos and Apple’s Photos app.

The initial onboarding process includes options that are intentionally made somewhat difficult to opt-out of, though disabling them is achievable.

Growth and Marketing

Yope has implemented an ambassador program to increase brand awareness and drive application downloads. This program compensates active users for promoting the app on platforms such as TikTok and Instagram.

The company reports that content created by these ambassadors has garnered over 56 million views. While the exact number of installs resulting from these videos remains undisclosed, approximately 70-80% of new users are acquired through invitations from existing users.

Future Plans

Bahram Ismailau, Yope’s CEO and co-founder, has stated the company’s goal of reaching 50 million monthly active users by the following year.

Further development is also planned. Video functionality, currently unavailable, is under development. A daily check-in notification is intended to prompt users to review their group’s activity and engage with posted photos.

The company also aims to enhance the “wall” feature, allowing users to add stickers, create doodles, and adjust the viewing scale to explore images across different timeframes – days, months, or years. The addition of ephemeral photos with a lock-screen timer is also being considered.

Expanding the User Base

Yope intends to introduce a dedicated “family group” format to broaden the app’s appeal beyond its current core demographic. Currently, the average age of Yope users is 18 years old.

Alongside user acquisition, Yope is exploring potential revenue streams, with subscription plans being the initial focus.

Navigating a Challenging Path to Expansion

Although the Yope application has recently gained traction, the underlying Yope startup has existed for a considerably longer period, initially without significant success. Established in 2021 by Ismailau and Paul Rudkouski – former classmates at Belarusian State University in Minsk – the team dedicated years to development and the pursuit of a successful product.

Their initial venture, Salo, was a social networking and chat application marketed as “the next generation platform for discussion.” The startup was originally named after this application. The pair also developed an app utilizing multiple cameras, conceptually similar to BeReal. A shift in focus occurred in 2023, leading them to create a platform for recording asynchronous video podcasts.

Subsequently, in September 2024, the company underwent another strategic pivot, resulting in the creation of Yope.

The startup operates with a geographically dispersed team, with members located in New York, Miami, Lisbon, and London, where they maintain an office. Plans are in place to establish a research and development center, and potential locations are currently being evaluated.

Identifying a Market Opportunity

Yope’s core functionality, centered around sharing photos and engaging in private group chats, appears to address an unmet need within the existing social media landscape.

While platforms like WhatsApp and Snapchat offer group creation features, and some users have established private groups on Instagram, dedicated photo sharing accompanied by related conversation isn’t a primary function of these dominant applications.

Furthermore, Instagram’s attempt to capitalize on this concept, through its Flipside application, was discontinued a mere five months after its launch, suggesting a lack of sustained interest.

“Existing platforms like Instagram and Snapchat prioritize curated content. Despite significant photo capture by Gen Z, only a small percentage – approximately 1% – are publicly shared,” Ismailau explained. He emphasized that Yope’s focus diverges significantly from Snapchat and Instagram, centering specifically on the sharing of “unfiltered content.”

A History of Attempts

Numerous other companies have previously attempted to build businesses around the concept of private group sharing. Recent examples include Retro, supported by Thrive Capital, and Sunshine, led by Marissa Mayer. However, similar initiatives date back as far as Path in 2010.

Notably, none of these ventures have achieved lasting success. Does this indicate that private groups may not inherently constitute a viable, independent business model? Yope believes the conditions may now be favorable for a renewed attempt.

Chi-Hua Chien, co-founder and managing partner at Goodwater, stated in an email to TechCrunch, “Goodwater focuses on investing in consumer applications that define new categories, and Yope exemplifies a significant emerging social trend.” He continued, “Yope simplifies the process of sharing daily experiences with close friends, and its rapid growth underscores the strength of both its product and its team.”

Yope’s current growth trajectory is promising, but its ability to maintain this momentum remains to be seen. BeReal, another application that attempted to foster a private group dynamic, experienced a period of rapid growth, even prompting a clone from Meta, before its expansion slowed considerably. (This application was ultimately acquired by Voodoo, an app and games company.)

After a series of unsuccessful ventures – both within the broader category and in their own product development efforts – the team is hopeful that Yope will finally achieve the breakthrough success they seek.

“They are diligently working towards their goals,” commented a venture capitalist who is not currently invested in the startup.