VC-backed Chinese dating app Momo files for US IPO

The regulatory filing does not disclose the number of shares to be sold, the pricing of the offering, or whether any of the investors will be making partial exits.

Momo launched in August 2011 and racked up 10 million users within 12 months. As of September 2014, it had 180.3 million users, of which 60.2 million are classified monthly active users. That same month, users of the app sent a daily average of 655.2 million one-to-one messages.

The app is downloaded free of charge, and Momo started generating revenues in July 2013 through the introduction of a membership subscription package, which offers additional functions and privileges. Later in 2013, mobile games, paid emoticons and mobile marketing services were launched, further monetizing the app.

Momo posted revenues of $13.9 million in the first half of 2014, up from $3.1 million in the final six months of 2013, with membership subscription fees accounting for 63% of the takings. The company has yet to turn a profit. Losses amounted to $3.8 million, $9.3 million and $8.3 million in 2012, 2013 and the first half of 2014, respectively.

Matrix participated in Momo's first institutional round, committing approximately $5 million in Series A funding in 2012 alongside an unnamed individual investor. The Series B round took place later the same year and was reportedly worth $40 million. Commitments disclosed in the filing include $1.5 million from Matrix, $15 million from Alibaba and $1.5 million from DST Advisors.

Last October, Matrix put in a further $13 million via the Series C round, while Alibaba and DST each invested $10 million. Several other parties contributed smaller sums. Sequoia and Yunfeng came into the fourth round in May of this year, committing $90 million apiece. Tiger Global invested $31.8 million.

Alibaba holds a 20.7% interest in Momo, with Matrix on 19.9%, and Yunfeng and Sequoia each on 5.6%. The size of the other investors' holdings has not been disclosed. The founders remain the largest single shareholder group.

• Tweet  
• Facebook  
• LinkedIn  
• Google plus  
• Save this article  
• Send to  

• Topics
• Exits
• Venture
• Technology
• Consumer
• Greater China
• China
• Consumer
• TMT
• Exit
• Venture
• Matrix Partners
• Sequoia Capital
• Yunfeng Capital
• Alibaba Group