As social platforms like Facebook have fallen out of favor among younger generations, messaging startup IRL is looking to provide a Gen Z-friendly solution for the things that never change, like the need for group chats and event planning. Looking to modernize the group messaging space, the company announced Tuesday that it closed on a $170 million oversubscribed Series C funding round to further its platform that combines the best of both worlds.
IRL’s latest raise brings its total venture funding to over $200 million, and it establishes the company as a unicorn with a $1.17 billion valuation. SoftBank Vision Fund 2 led the round that also saw participation from investors including Dragoneer, Goodwater Capital and others.
What sets IRL’s platform apart is its service as a group messaging app that’s built around an open discussion board. The goal is to create a messaging experience that differs from the standard, more private group communication channels for the purpose of planning events and sharing social experiences. The company also recently expanded its platform’s offerings, like its college group feature, to provide more ways to help users connect with others based on shared interests. Its product combines the discoverability of a Facebook group with a vertical sharing network like Instagram.
“What makes us special is this vertical network around groups and events built in a messaging product,” Abraham Shafi, IRL’s CEO and co-founder told Built In. “So for the new generation who uses Snapchat, Instagram [and] TikTok, there actually is no groups and event product for them because they’re not using Facebook ... there’s no place for them to organize in groups and plan events, so that’s really where our magic is.”
Alongside the funding round, IRL also announced the launch of its Culture and Creator Funds, scheduled for next month. The Culture Fund will enable people around the world to organize events within their city in an effort to bring more culture back to their communities, according to Shafi. The Creator Fund will fuel people looking to lead movements or be a consistent influence in their communities.
“We’re of service to humanity, we’re of service to helping people,” Shafi said. “And so, our mission is to help people spend more time together whether that’s in the real world or in the remote world, driving human connection.”
That need for human connection was exacerbated over the course of the pandemic, a factor to which Shafi attributes much of the app’s recent growth. Over the past 15 months, IRL has grown over 400 percent and now counts 12 million active users a month. With the capital from this round of funding, it’s looking to further that growth by scaling up its team and investing in international expansion.
IRL is planning to build out its team of 25 across all functions with a focus on engineering and product. It plans to reach 100 employees over the next 12 months.
