Kik Messaging Gets $1 Billion Valuation With Tencent Investment

Messaging app firm Kik Interactive, Inc. has raised $50 million Series D in a round funded exclusively by Chinese tech giant Tencent Holdings, Inc.

Tencent is a Chinese firm with a focus on internet products including online sales, social networks and China’s most popular messenger service WeChat.

He also said that Kik won’t be targeting China anytime soon (seems obvious now given WeChat’s foothold there) but plans to use the money to grow the company’s employee base. The company which has been quite famous among the teenage crowd had been looking for a strategic partner for quite a while and its finally found it.

Kik recently integrated games and other apps, such as music-streaming service Soundcloud, within its messenger service to attract more users.

The Canadian startup says it has 240 million registered users and claims that 40 percent of American teenagers are active on Kik. “As the maker of QQ and WeChat, it was clear they understood chat deeply, making them a great sounding board”, Founder and Chief Executive Officer Ted Livingston said in a post about the deal on Medium. The company concluded its search with Tencent’s investment, Livingston said, noting that the cash infusion isn’t expected to lead to a Tencent acquisition.

Livingston stated that the company has still not made profits but is working towards it. Last week the company launched a trial product called Jam to connect users with their favorite bands and musicians, and offers promoted chats that permits advertisers to communicate directly with users who pick it.