Mode Mobile Acquires Anonymous Messaging App NGL

In a significant development within the tech space, the anonymous messaging application NGL has recently been acquired by Mode Mobile. NGL, which climbed the charts on Apple’s app store in 2022 for its unique offering, faced legal challenges over allegations of targeting young users improperly, resulting in a penalty settlement with federal agencies.

The intricacies of the acquisition deal remain undisclosed. However, it's known that NGL founders operated with minimal resources, running with a skeletal staff of just five and without any external financial investments. Initially introduced in November 2021, NGL quickly ascended to the premier position on Apple's App Store in the United States.

Rise and Legal Challenges

Anonymous platforms have an undeniable appeal to younger demographics, inducing excitement whenever they receive feedback, especially when the anonymity veil hides the identity of admirers or critics. Unfortunately, some of NGL's explosive growth was rooted in controversial practices that drew legal scrutiny.

The app faced allegations for marketing itself to younger audiences, inadvertently exposing them to potential online threats such as cyberbullying. Such concerns prompted the Federal Trade Commission along with the Los Angeles District Attorney to intervene.

Shifting Focus and Growth

In response, NGL’s creators, Raj Vir and João Figueiredo, opted to pay a $5 million settlement and agreed to policies prohibiting marketing to minors. This transformation saw a temporary dip in usage, but regaining momentum was swift once the focus shifted exclusively to adult users.

Amending its strategy has positioned NGL as a major platform among Gen-Z, known for its international reach and vibrant social engagement. Today, it boasts over 125 million active monthly users, propelled by significant global cultural integration, as noted by Dan Novaes, Co-founder and CEO of Mode Mobile.

Leadership Transitions and Future Directions

As part of the acquisition agreement, NGL's small team, comprising three members, will transition to join Mode Mobile. Meanwhile, Vir and Figueiredo are stepping aside to explore new ventures but will remain involved as consultants during the transition period.

The issues associated with anonymity in messaging applications mirror those encountered by other apps like Yik Yak, Yolo, and LMK, which have faced similar criticisms. Notably, last year saw the shutdown of Ask.fm, another app in this arena.