Wire, End-to-end Encrypted Messaging App, Raises $21 Million in Series B Funding
Wire, the end-to-end encrypted messaging app, has recently announced that they have successfully raised a whopping $21 million in their Series B funding round.
This round was led by UVC Partners as the company said that they are focusing on the enterprise market more than ever, a couple of years ago.
In the initial years, Wire started as a consumer app, however, they never managed to attract hundreds of millions of customers. This was not because Wire was a bad product but because of its marketing and competitive landscape.
Wire offers its users a lot of features that let you securely talk with other people using text messages, voice messages, photos, and video. It also offers you an easy way to start a video call and share files with other users. In fact, the messaging app supports both one-to-one conversations and rooms.
The best part about the app is that every message you send is end-to-end encrypted by default. Meaning, the company can’t decrypt your conversations and they certainly cannot share them will court or expose them to a potential hacker.
In 2019, the company had its plans to open a holding company in the U.S. to raise some funding. To find a clear path toward profitability, they double down the idea on enterprise customers. Their focus hasn’t changed since then.
“If I think back on the evolution of the business – three years ago we had zero revenue and zero customers – whereas today we’re announcing a B round and we have established a well-recognized enterprise brand amongst the likes of Gartner, which is one of the things I am extremely proud of,” Wire’s CEO Morten Brogger says.
“I also think that with the focus on a revenue-generating, enterprise business, we avoid situations like WhatsApp, where the only model you can ultimately turn to is monetizing data,” he added.
Right now, the Wire model seems to be working when it comes to revenue growth. The company also has 1,800 customers that have increased almost by 50% over the past year. Wire’s overall revenue has tripled in 2020.
Besides working on Messaging Layer Security (MLS), the company is also focusing on improving conference calls and real-time interactions. They believe messaging and real-time collaboration apps are converging.