Group messaging app IRL is in talks to raise more than $50 million at a $1 billion valuation, 10 times the level of its last round, according to two people familiar with the matter.
The funding for IRL, which has caught on quickly in recent months among teenagers in the U.S., follows a resurgence in competitive deals for social media startups like Clubhouse and photo-sharing app Dispo. IRL hasn’t finalized the new funding round, but has recently been approached by investors that include Tiger Global and IVP, among others, the people said.
Like Clubhouse, IRL appears able to command a billion-dollar valuation before it even has brought in any revenue. IRL is expected to try to make money by charging commission on paid features, rather than by selling advertising. The company was last valued at $100 million in September. It has raised a total of $28 million to date from investors that include Goodwater Capital, Floodgate, The Raine Group and Founders Fund.