In recent years, numerous photo and video applications targeting young adults with social features have emerged, making it challenging for investors to identify the next big thing. However, apps that demonstrate significant traction among 18- to 20-year-olds tend to capture the attention of investors seeking the next Instagram or TikTok.

A notable example is the photo-sharing app Yope, which allows users to share still images with private groups. The app has gained considerable traction, with 2.2 million monthly active users and 800,000 daily active users, representing a 30x growth over the past six months. Furthermore, Yope boasts a 40% day-seven retention rate, indicating that 40% of users remain active on the app seven days after installation.

This impressive growth has sparked significant interest among venture capitalists. TechCrunch has learned that the startup behind Yope has secured an initial seed round of $4.65 million, valuing the company at $50 million. Goodwater Capital leads the round, with participation from Inovo VC, Redseed, and several angel investors, including Jean de La Rochebrochard, Greg Tkachenko, and Dima Shvets.

According to a source, Yope is generating considerable buzz, with some even referring to it as “the new Instagram.” The app’s simplicity and engaging features, such as a lock screen widget, streak feature, and recap slideshow, have contributed to its popularity.

The App

Yope’s interface is straightforward: users can take or upload a photo and share it with a private group, where they can engage with others through chat and reactions. Each group features a “wall” that utilizes machine learning to create an endless photo collage. The app also incorporates features like a lock screen widget, streaks, and a recap slideshow to foster engagement.

To drive growth, Yope has established an ambassador program that incentivizes power users to promote the app on other platforms, resulting in over 56 million views. The company aims to reach 50 million monthly active users by next year and is exploring additional features, including video sharing and interactive group walls.

Yope’s success can be attributed to its focus on sharing “unfiltered content” and creating a platform for private group sharing, which fills a gap in the market. While other apps, such as Instagram and Snapchat, offer group features, they are not the primary use case for these platforms.

The company is planning to launch a family group format to expand its user base beyond its core Gen-Z audience and is exploring revenue ideas, including subscription plans.

A Bumpy Road to Growth

Yope’s journey to success has not been without its challenges. The startup, founded in 2021 by Bahram Ismailau and Paul Rudkouski, underwent several pivots before finding traction with its current product. The company’s previous attempts, including a social networking chat app and a multi-camera app, did not gain significant traction.

Despite the setbacks, Yope’s current growth is impressive, with the company aiming to reach 50 million monthly active users by next year. The startup has a scattered team across various locations and plans to open an R&D center in the future.

Yope’s success has also caught the attention of investors, with Goodwater Capital’s co-founder and managing partner, Chi-Hua Chien, expressing enthusiasm for the app’s potential. “Yope is making it easy for everyone to share their daily lives with close friends. Their explosive growth speaks volumes about the strength of their product and team,” Chien said.

However, the question remains whether Yope can sustain its growth and become a category-defining consumer app. The company faces competition from other private group-sharing apps, and its ability to maintain user engagement will be crucial to its long-term success.

As one VC who is not backing the startup noted, “They are working hard.” Yope’s journey serves as a reminder that success in the tech industry often requires perseverance and adaptability, and the company’s future will be worth watching.