Mode Mobile, a smartphone company that rewards users, has acquired NGL, an anonymous messaging app known for its viral success. The acquisition takes place amid surging user growth following a focus shift after settling Federal Trade Commission (FTC) allegations.
NGL's Path and Challenges
NGL was founded by Raj Vir and João Figueiredo in 2021 and quickly gained popularity, reaching the top of Apple’s App Store in 2022. However, in 2024, it faced a $5 million fine from the FTC for exposing minors to cyberbullying. Following the settlement, NGL remade its platform around adult users, enhancing safety measures and restricting under-18 access.
Acquisition Details and Future
Mode Mobile's CEO Dan Novaes characterizes NGL as a platform with significant Gen-Z appeal and over 125 million monthly active users. As part of the acquisition, three of NGL's employees will join Mode Mobile, while the founders plan to provide transitional advice before moving on to new ventures.
The broader context includes challenges faced by similar apps like Yik Yak, Yolo, and LMK, particularly concerning cyberbullying and harassment. Nevertheless, NGL has managed to reposition itself successfully post-FTC settlement, contributing to its appeal to Mode Mobile.
