NGL, the anonymous messaging app, was acquired by Mode Mobile, a company that rewards smartphone users while bombarding them with ads, as announced on Friday.
Since its launch in late 2021, NGL has made a quick rise up the App Store charts, aligning itself with other popular apps among teens that facilitate sending and receiving anonymous messages and questions. However, its journey has been marked by controversy.
These types of anonymous messaging apps can lead to issues like bullying among teens. In fact, Snapchat banned third-party apps including NGL, LMK, Sendit, and YOLO in 2022 after being sued by a parent who alleged that the app contributed to her teenage son’s suicide.
NGL faced scrutiny for questionable growth tactics, such as generating fake messages that appeared to be from real users but were actually automated responses. Some users were misled into subscribing for $9.99 a month to uncover the identities behind these fake messages.
Following a two-year investigation, the FTC announced in 2024 that it would prohibit NGL from catering to minors, marking a significant effort to safeguard young users from negative social media experiences.
“The bait-and-switch tactics employed by NGL led to numerous complaints from consumers, which the company’s executives dismissed, labeling these individuals as ‘suckers,’” the FTC stated. NGL ultimately paid a $5 million fine to the FTC and agreed to comply with its directives.
According to Business Insider, NGL’s co-founders, Raj Vir and João Figueiredo, are stepping away from the app. The app’s three remaining employees will join the team at Mode Mobile.
Given NGL’s track record of shady growth strategies, this acquisition by Mode Mobile seems fitting.
Mode Mobile offers a smartphone dubbed the “EarnPhone,” which reportedly includes features that allow users to earn rewards. The company states users can make money by completing everyday phone tasks like listening to music, playing games, and browsing online. Mode Mobile claims to generate revenue through “digital advertising partners” that pay for user engagement. Essentially, while your phone is flooded with ads, you might earn just enough to cover a round of drinks at a local bar.
The details of the sale haven’t been disclosed.
