EarnPhone startup Mode Mobile Acquires NGL App

Credits: AllBlogThings

Mode Mobile bought NGL, the anonymous messaging application, in a deal announced on December 19.

The acquisition terms remain undisclosed, and NGL's cofounders, Raj Vir and João Figueiredo, plan to depart while advising during the transition period.

NGL's three remaining employees will transfer to Mode Mobile.

NGL launched in November 2021 and gained rapid popularity, reaching the top spot on Apple's U.S. App Store in 2022.

The app permits users to send and receive anonymous questions and messages, attracting over 125 million monthly active users, many from Generation Z.

It operated without external funding and maintained a small team of five people in a WeWork space.

Mode Mobile produces the EarnPhone, a device that lets users earn rewards through activities such as listening to music, playing games, and browsing the web.

The company generates revenue from advertising partners that pay for user engagement and attention.

Dan Novaes, Mode Mobile's chief executive and cofounder, said:

"NGL stands out as one of the most culturally relevant Gen-Z platforms operating at true global scale, with more than 125 million monthly active users and one of the strongest viral loops we've seen replicate across countries and cultures."

NGL encountered regulatory scrutiny in 2024, settling with the Federal Trade Commission and the Los Angeles District Attorney's Office.

The settlement included a $5 million fine and a ban on offering the app to users under 18, following allegations of marketing to minors and exposing them to cyberbullying and harassment.

Lina M. Khan, then the FTC chair, stated in the complaint:

"NGL marketed its app to kids and teens despite knowing that it was exposing them to cyberbullying and harassment."

The app also faced criticism for deceptive tactics, including sending automated fake messages to prompt subscriptions.

After the settlement, NGL refocused on adults and enhanced safety features. João Figueiredo, NGL cofounder, noted:

"There was a short-term effect from restricting under-18 usage, followed by renewed momentum after refocusing on an 18+ audience."