Light Reading
Mobile messaging and social networking app raises $280 million to innovate, hire new talent, and expand its content partnerships.

It Takes $280M to Tango

Sarah Reedy
3/20/2014
50%
50%

Mobile messaging services provider Tango has pulled in $280 million in fresh funding, surpassing Uber as one of the most massive cash grabs in the past decade. (See Tango Waltzes Off With $280M From Funding Round.)

The firm announced Thursday it has closed a $280 million round of funding, led by Alibaba Group at $215 million, along with $65 million from some of its prior investors, including Qualcomm Ventures. Today's funding brings its total to $367 million in venture capital raised to date. (See Tango Gets Cash, $40M in Series C VC.)

For a point of comparison, popular black car and taxi service Uber pulled in $258 million last September. Fellow over-the-top communication app WhatsApp was just acquired by Facebook for $16 billion. (See Facebook to Acquire WhatsApp for $16B, Baby, You Can Fund My Car: Uber Drives August VC, and Mobile Services Are Next Uber Trend.)

Tango (not to be confused with the wacky soft drink) offers a free video and text app that works across 3G, 4G, and WiFi, as well as on phones or computers. The app is in the heart of one of two of the biggest trends in mobility today: free over-the-top communications and social networking. In addition to its free chat services, Tango lets users share songs via Spotify integration and play games online with friends. (See Operators Can't Kik the OTT Habit.)

The company says that, since rolling out social networking features in July 2013, daily engagement on its app has doubled and "hundreds of millions" of songs have been shared among members. The multilingual app counts 200 million registered users across 224 countries, double what it had a year ago, along with 70 million monthly active users.

"A whole new level of connection and sharing of experiences is available through messaging apps that fundamentally affects the way content gets distributed on mobile," CTO and co-founder Eric Setton said in a statement on the funding. "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."

— Sarah Reedy, Senior Editor, Light Reading

(29)  | 
Comment  | 
Print  | 
Newest First  |  Oldest First  |  Threaded View
Page 1 / 3   >   >>
nasimson
50%
50%
nasimson,
User Rank: Light Sabre
3/26/2014 | 1:15:12 PM
Tango, good luck.
I used to use Tango on my tablet & really liked it. Its simple, it works and its awesome. I am happy that they got the funding to go the next level. Video chats always make social sense in so many contexts across many countries. So its a popular area being competed by many services but I am confident Tango can find & maintain its unique place in the competition.
Ariella
50%
50%
Ariella,
User Rank: Light Sabre
3/25/2014 | 2:01:12 PM
Re: $$$!
@Sarah I'm certain you're right about that.
SarahReedy
50%
50%
SarahReedy,
User Rank: Blogger
3/24/2014 | 2:47:01 PM
Re: $$$!
I'm sure Tango and others like it are inspired by WhatsApp in that regard.
Ariella
50%
50%
Ariella,
User Rank: Light Sabre
3/24/2014 | 2:05:01 PM
Re: $$$!
@DanielCawrey, yes, that's exactly how some startups made money. They didn't have a monetization plan, but they were bought up by a big company for a lot of money. 
danielcawrey
50%
50%
danielcawrey,
User Rank: Light Sabre
3/23/2014 | 4:09:24 PM
Re: $$$!
Mitch is right, and I think that my thinking is that it's not entirely clear how this company is going to make money.

What's common these days is that another larger company will likely swoop in and buy Tango down the line, integrating userbases or other synergistic opportunities That's my best guess. 
DanJones
50%
50%
DanJones,
User Rank: Blogger
3/21/2014 | 10:07:46 AM
Re: Takes 3 to Tango
I was getting it confused with Turner and Hooch.

https://www.youtube.com/watch?v=a4RAg-iCSc0
SarahReedy
50%
50%
SarahReedy,
User Rank: Blogger
3/21/2014 | 10:03:55 AM
Re: Takes 3 to Tango
hmm You mean Cop Dog? There are almost as many movies with Tango in the title as there are wireless companies called Tango.
DanJones
50%
50%
DanJones,
User Rank: Blogger
3/21/2014 | 9:58:00 AM
Re: Takes 3 to Tango
Oh wait, I thought it was the one with the cop and his dog.
SarahReedy
50%
50%
SarahReedy,
User Rank: Blogger
3/21/2014 | 8:17:31 AM
Re: $$$!
I can think of one big group that will pay for that (operators), especially if it's of the software-defined variety. Tango does monetize its product, but a lot of the OTTs don't. I wonder what the VCs see in the ones they back in such a crowded market -- acquisition potential, IPO? Because it can't always be the potential to make tons of money...
SarahReedy
50%
50%
SarahReedy,
User Rank: Blogger
3/21/2014 | 8:15:47 AM
Re: Takes 3 to Tango
A missed opportunity: http://www.imdb.com/title/tt0098439/...
Page 1 / 3   >   >>
Flash Poll
From The Founder
It's clear to me that the communications industry is divided into two types of people, and only one is living in the real world.
LRTV Interviews
The New Wave of IP + Optical Integration

11|21|14   |   04:29   |   (7) comments


At the Alcatel-Lucent Technology Symposium, Heavy Reading senior analyst Sterling Perrin talks about how SDN has reshaped the discussion around packet and optical integration.
LRTV Huawei Video Resource Center
Huawei Highlights at BBWF 2014

11|20|14   |   3:40   |   (1) comment


Broadband World Forum is one of the world's largest telecoms, media and technology events with over 7,800 senior executives from across the globe converging on Amsterdam every year to identify the Next Big Thing. BBWF is an exciting place to meet the entire industry under one roof and identify the latest in network innovation, service optimization and customer ...
LRTV Huawei Video Resource Center
How Will BCMS Stimulate Margin for Broadband Operators?

11|19|14   |   6:52   |   (0) comments


In BBWF 2014, Liu Shuqing emphasizes the value of FMC 2.0 based full service experience by throwing light on the BCMS solution. The underlying principle of this innovative technique is to create network robustness and driving network from connection oriented to ACE – BAND oriented infrastructure, in which applications, cloud, and user experiences will be an asset ...
LRTV Huawei Video Resource Center
SingleFAN3.0: Better Connected Experience

11|19|14   |   3:06   |   (1) comment


At the BBWF 2014, David Hu, the VP of Huawei Access Network Product Line, talked about the future of access networks – SingleFAN3.0: faster broadband, wider coverage, and smarter connection.
LRTV Interviews
Basil Alwan Interview: The Road to Cloud

11|19|14   |   09:09   |   (0) comments


Alcatel-Lucent's head of IP and Transport talks about the migration towards a web-like networking environment, the impact of the cloud, SDN and NFV, and the yet-to-be-announced FP4 chip.
LRTV Documentaries
FairPoint Makes a Fair Point About Analytics

11|19|14   |   1:56   |   (1) comment


The US-based communication service provider gets to grips with advanced analytics, tackling data and breaking down the silos within its own business.
LRTV Documentaries
Analytics Lets C Spire Get to Know Subs

11|19|14   |   3:01   |   (2) comments


It's all about the data for US operator C Spire as it uses analytics to personalize its customer service down to individual subscribers.
LRTV Interviews
Nuage Branches Out With SDN: CEO Interview

11|17|14   |   9:32   |   (0) comments


Sunil Khandekar, CEO of Alcatel-Lucent's SDN-focused unit Nuage Networks, talks about the opportunities and challenges of breaking out of the data center into wide-area networks.
Light Reedy
Telecom Analytics Grows Up

11|14|14   |   1:15   |   (4) comments


The big data analytics debate has moved on from a year ago, with some experts suggesting it's no longer a technology challenge.
LRTV Huawei Video Resource Center
Huawei Compass

11|14|14   |   3:17   |   (1) comment


At OpenStack Summit 2014, Shuo Yang, Huawei Principal Cloud Infrastructure Architect introduced Huawei Compass, the software tool for solving customers' problems on the journey of OpenStack Cloud.
LRTV Huawei Video Resource Center
Huawei's Cloud Strategy in European Region

11|14|14   |   2:56   |   (1) comment


At OpenStack Summit 2014, Dr. Gotz, CTO of Huawei IT in European Region introduced Huawei's cloud strategy in European region.
LRTV Huawei Video Resource Center
Huawei's Contribution on OpenStack

11|14|14   |   5:58   |   (0) comments


At OpenStack Summit 2014, Dennis Gu, Huawei Chief Architect of Cloud Computing introduced the relationship between OpenStack and cloud computing, and Huawei's contribution on OpenStack.
Upcoming Live Events
December 2, 2014, New York City
December 3, 2014, New York City
December 8-10, 2014, Reykjavik, Iceland
February 12, 2015, Atlanta, GA
April 14, 2015, New York City, NY
May 6, 2015, McCormick Convention Center, Chicago, IL
May 13-14, 2015, The Westin Peachtree, Atlanta, GA
June 9-10, 2015, Chicago, IL
Infographics
Irish Telecom outlines the rise of VoIP technology, including its adoption within businesses and their perception of its quality.
Hot Topics
Bell Labs Chief Slams 'Toy' Networks
Robert Clark, 11/19/2014
$38.3M: Ain't That a Kik in the SMS
Sarah Reedy, Senior Editor, 11/20/2014
Do You Have a 2020 Vision?
Dennis Mendyk, Vice President of Research, Heavy Reading, 11/21/2014
The New Wave of IP + Optical Integration
Ray Le Maistre, Editor-in-chief, 11/21/2014
Google, AT&T, BT Unite on Network Data Models
Carol Wilson, Editor-at-large, 11/20/2014
Like Us on Facebook
Twitter Feed