Korean Startup HyperConnect has developed the unique video-chat app Azar and is one of the most promising startups with revenue expectation exceeding $100 million this year and a promising IPO. The app Azar was launched in 2014 and exceeded 200 million cumulative downloads from 230 countries worldwide by 2018.
Making matches across the world
Video call using the Azar app connects the user to the other party regardless of communication speed or technical specifications. Azar is kind of a video ‘Tinder’ matching users with video-chats. Since its launch, it has made 30 billion matches. It allows users to easily build meaningful relationships, make new friends and communicate with others using machine learning-powered technologies.
This aspect of the app’s service is giving enough revenue to HyperConnect through in-app purchases to allow users to select matches by region and gender. Azar basically randomly matches users but if they want to choose a specific country or language, they have to subscribe with a cost. This revenue-earning model put Azar ninth in the global non-gaming segment in the Google Play Store last year.
Since its inception, Azar has been targeted to the local market and global shores. It has gained tremendous popularity in Southeast Asian countries, India, the Middle East, Turkey, and even Saudi Arabia. Ninety percent of HyperConnect’s sales are from foreign shores.
Meeting Investor Expectations
HyperConnect was founded by Sang-il Ahn, who was President of the Startup Club in Seoul University, Kang-sik Jung, CTO of Seoul University Computer Engineering Program, and Hyun-tek Yong CSO from Pohang University Computer Engineering Program. HyperConnect ,with its expert engineering team, wanted to bring in a cutting edge WebRTC, a real-time video communication technology. After trial and error, HyperConnect developed Azar, the first in the world WebRTC that could be used on mobile platforms.
In December 2014, Altos Ventures, headquartered in Silicon Valley, had invested $2 million in a seed round for HyperConnect for their video messenger Azar. Altos Ventures CEO Han Kim had said at the time of funding the startup they had trust in the greater potential of HyperConnect. In 2015, HyperConnect had raised US $8.6 million in Series B funding led by SoftBank Ventures and Alto Ventures.
The startup has definitely exceeded the expectations of its investors with grand success and revenue generation. HyperConnect has recorded 71.4% year-on-year increase in sales and an explosive growth of over 30 times in just four years. The startup is now concentrating on developing more features for Azar and new products for the global market.