How BeReal Sold for $550 million

BeReal’s path to a $550M buyout

BeReal gained momentum with its unfiltered approach to social media, encouraging users to share real-time, candid moments. Four years after its launch in 2019, the app has attracted over 70 million users and was recently acquired by French tech giant Voodoo for $550 million.

Startup Story of BeReal

How BeReal got 70 million users

BeReal, founded in France in 2019, was offering a way for users to have a more authentic social media experience by prompting them once a day to share real-time, unfiltered moments by posting an image from both their front and back cameras.

The startup raised $30 million in early funding, enabling them to build the app and create their user base. Initially, BeReal targeted French university students, using word-of-mouth and referral incentives to gain traction. With this strategy BeReal spent very little on paid marketing, relying instead on organic growth and user referrals.

Similar to start of Facebook this strategy managed to land BeReal its first 100k users. With a word-of-mouth growth strategy their breakthrough came in 2022, when a campus-focused marketing push in the U.S. and UK led to a 315% spike in usage.

By the end of 2022, BeReal had over 53 million downloads, and its user base surged to 70 million. This growth was fueled by disillusionment with more polished platforms like Instagram, positioning BeReal as the go-to app for genuine connections.

The $500 million buyout

Despite having over 70 million users, BeReal wasn’t generating revenue. The founders resisted ads, sticking to a user-first philosophy. However, this left the startup reliant on venture capital, leading them to raise another $90 million in 2022 which pushed its valuation to nearly $600 million. With no clear path to profitability, BeReal was quickly burning through cash, leaving them with limited runway.

As BeReal neared a financial cliff and challenges with their revenue model, French mobile app giant Voodoo saw an opportunity. With expertise in scaling and monetizing apps, Voodoo acquired BeReal for $500 million. With a rapidly growing, highly engaged audience, they believed the next step was to introduce advertisers and subscription models to the platform.

Although the acquisition came in below BeReal's peak valuation, investors backed the deal. With no immediate revenue model and increasing competition, the venture capital firms saw Voodoo's experience as the best chance for BeReal’s success.

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Odin & Hari