Messaging platform Snapchat is set to acquire US-based services search app Vurb in a deal worth about $110m that will provide an exit to internet company Tencent, The Information reported yesterday.
Founded in 2011, Vurb provides a search app that aggregates and contextualises content, services and community recommendations in a single place, allowing users to save time on toggling between a range of apps when deciding on a service or buying a product.
Vurb added a messaging feature to the app in August 2015 at the same time as it launched on Android.
The company eventually plans to have companies build profiles on its app, meaning users could hypothetically book all their services from Vurb. Such a capability could hypothetically also serve as a way for Snapchat to monetise its platform, as Tencent has monetised its WeChat app in China.
The acquisition fee will consist of 75% stock and 25% cash, and will be paid separately to team retention payouts that will total almost as much, a person familiar with the deal told The Information.
The company had raised $10m, securing $2m in seed funding from Charles River Ventures, CrunchFund, Atlas Venture and a host of angel investors in 2013. It revealed in August 2015 Tencent was also an investor in the seed round.
Vurb subsequently closed an $8m series A round led by Redpoint Ventures and backed CrunchFund, Atlas, CRV, Stanford University, DCVC and various angels the following year.