Kik Becomes a Unicorn with $1bn Valuation

kik comboCanadian messaging app Kik has joined the exclusive group of private tech companies valued at $1bn (£638m) after receiving a $50m investment from Chinese internet company Tencent.

Kik is one of the most popular OTT messaging apps in Canada and the US, and enables users to access an ecosystem of games and numerous other services within the Kik app, boosting engagement and time spent in the app by providing further features beyond just messaging.

In this way, the app is very similar to Tencents own WeChat, which has dominated the messaging app space in China and has made massive inroads in including additional features. WeChat contains over 10m third-party apps which range from online banking to minicab booking and shopping.

“This process started a year ago, when our board asked us if a partnership with a large company might give us an advantage in winning the chat race,” said Ted Livingston, founder and CEO of Kik. “Right from the start, Tencent was at the top of the list.

“As the maker of QQ and WeChat, it was clear they understood chat deeply, making them a great sounding board. When we met the Tencent team in China, it became clear that we had a shared vision. We agreed that someone would do in the West what WeChat was doing in China. The only question was who. We both believe it could be Kik.”