Tencent, the China-based internet company that owns instant messaging service WeChat, invested $50m in Canada-based messaging app developer Kik yesterday at a $1bn valuation.
Founded in 2009, Kik operates a messaging app it claims has some 240 million users. The company will use Tencent’s series D funding to build out the messenger to an ecosystem of apps, similar to WeChat’s service, which includes the ability to pay bills, follow celebrities and book taxis.
Kik has disclosed approximately $116m in total funding and its existing investors include RRE Ventures, Spark Capital, Union Square Ventures, Foundation Capital, Valiant Capital Partners, Millennium Technology Value Partners, SV Angel and Golden Triangle Angel Network.
Ted Livingston, founder and chief executive of Kik, said: “We think chat will be the simplest way to connect with the world around you.
“Consumers and developers alike are suffering from app overload, and we are increasingly seeing the potential for services to be delivered in better, lighter-weight ways through chat, especially with bots. Companies like Slack, Telegram, and Facebook are also starting to realise this.”