MobileNews

Chinese Messaging App Momo Raises $216m In IPO, Valued At $3bn

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Shares of Chinese messaging app Momo rose by 26% on its first day of trading, the company raising $216m.

The Alibaba-backed app debuted on the Nasdaq yesterday, and was valued at around $3bn.

Their first day successes come after corruption allegations from a former employer of Momo CEO Tang Yan, who said he had stolen technology from NetEase, and founded Momo while still an employee there.

Momo is a location-based messaging and social platform which has 180.3m registered users, 60.2m active monthly users and 25.5m daily users, according to their filing.

In their prospectus, Momo wrote: “People may not understand the value of our platform, and there may be a misperception that Momo is used solely as a tool to randomly meet or date strangers.”

Momo also recently introduced location-based advertising — and in their filing spoke about the marketing potential for location apps like Momo in China.

The app monetises through a combination of premium subscriptions and selling things like stickers, games and emoticons.

Since they started monetising in July 2013, their revenues have quadrupled to $13.9m in the first half of 2014.

They generated 63% of this revenue from premium subscriptions.

Simon Edmunds

Simon is the former editor of Global Dating Insights. Born in Newcastle, he has an English degree from Queen Mary, London and after working for the NHS, trained as a journalist with the Press Association. Passionate about music, journalism and Newcastle United.

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