Alibaba Invests $280M In Chat App Tango.
After a week after the Chinese internet giant Tencent, the company behind Wechat and the country’s largest mobile communication service, had made a daring move when it claimed a 15% stake in online sales company JD.com. A move that may have been a direct hit against its competitor e-commerce Alibaba.
Now it seems that Alibaba has decided to step up their game with its recent big investment.
Tango a mobile video chat application has announced on Thursday, that it has managed to raise a funding round of $280 million. $215 million of that money came from Alibaba, with the other $65 million from previous investors.
Tango had previously manged to raise $87 million in total, which includes the $42 million from July 2011 and another $40 million in a Series C funding from April 2012. The investors who were involved include, DFJ, Toms Capital, Access Industires, Qualcomm Ventures and Translink Capital, along with Jerry Yang, Bill Tai, Alex Zubillaga, Shimon Weintraub and plenty of others.Michel Zeisser from Alibaba will be joining Tango’s Board of Director, as part of the financing deal.
With this new round, Tango has managed to raise $367 million in venture capital financing to date. The company is currently valued at $1.1 billion.
“This round of funding will enable us to continue to innovate, hire the best talent, aggressively expand our content partnerships, and build a world-class platform as we go after what is truly a big opportunity,” Eric Setton, CTO and co-founder of Tango, said in a statement.
Furthermore along with this funding news, Tango has revealed that it has reached over 200 million users, doubling its user base in less than a year, with a monthly active users being 70 million.
The California-based Tango allows users to text, call, video chat and play games with others for free. It also has a store that allows the users to buy avatars and animations to “enrich their communication and messages.” The company had rolled out a social networking feature during the previous July and integrated with Spotify in October 2013. Tango has said that they have had hundreds of million of songs shared between its members.
The company rolled out social networking features on in July of last year, and integrated with Spotify in October 2013. Since then, Tango says that hundreds of millions of songs have been shared between its members.