After two long years of being wooed by Facebook CEO Mark Zuckerberg, Facebook bought WhatsApp for $19 billion in February 2014 and all the employees were placed on Facebook payrolls including Koum. It allowed them to capitalize on the impact of the network.This technique of first building a network and then making money has proven fruitful. The founders ‘plan was to put the company as a synonym for instant messaging. The sum was $52 M as the value of a Sequence B. In July 2013 Sequoia received a follow-on support.WhatsApp had received $8 M Series A from Sequoia Capital in April 2011.

Brian Acton persuaded five of Yahoo!’s ex-colleagues to invest an additional $250,000 in a Seed Round in Oct 2009.WhatsApp was originally created on 4 February 2009 by Jan Koum.WhatsApp have received decent funding in its first, second and third round by various investors. So let’s try to understand some points which are the probable models for WhatsApp to generate revenue. There are definitely some major plans in developers ‘minds (and Facebook) with respect to their revenue model. Yet the question of how WhatsApp makes money has been in everyone’s minds since the start, as WhatsApp proudly expresses its views against native advertising and hasn’t paid its users for a long time. This Facebook-owned IM program now supports more than 1 Million users worldwide. It was further updated to WhatsApp 2.0 and transformed it into an Instant Messaging Application and the real story began. WhatsApp was created as a status update application (hence the name WhatsApp) by Jan Koum and Brian Acton in the early months of 2009.

What is whatsapp business model