We’re hearing from many sources that Down to Lunch has satisfied with buyers about a likely financing spherical.
Down to Lunch became a bit of a darling during its increase many thanks to its useless-very simple method: signal to your friends that you’re interested in getting lunch, drinks, or whichever else and determine out who’s up for it. This is a very simple concept, but in truth fills a market that greater companies like Facebook continue to have not fairly figured out how to nail down fairly nevertheless. The value of that market is unclear, but then again, other sorts of effective reduced-touch programs have started off with what seemed like early market programs.
Information are scarce, and there is also always a probability that whilst the enterprise is assembly with buyers, it may not elect to increase income.
We’re hearing this all as the app has confronted scrutiny for the perception that some people are acquiring annoyed by text concept invitations. Since expanding like outrageous and rocketing to the top of the app store, it’s fallen in both of those the top free of charge app and top social networking app types in the previous 30 times. The use of intense choose-in text concept invites isn’t unusual amid social applications, but often doesn’t yield strong retention. It can work improved in situations in which there is a manifest transactional return — see Uber.
There was also what Down to Lunch described as a “smear campaign” occurring on Twitter and the Application Shop that the app was allegedly staying utilized for human trafficking, which the enterprise has publicly denied. The enterprise explained this massively, and negatively, impacted its consumer base and app store rankings.
Down to Lunch has elevated earlier and the app does not show up to take a ton to run — which is some thing that could give them additional runway. But raising income can assist a enterprise scale the provider additional rapidly, which is significant to head off likely competition from other startups and greater companies that will concentrate on the area if it looks like Down to Lunch will be effective.
“There’s a ton of discuss about Down to Lunch right now — sadly, most of it is not legitimate,” co-founder Nikil Viswanathan explained. “Here’s what is legitimate — we’re super centered on producing the best product or service to assist individuals cling out with their good friends day by day. With regards to invitations, faculty students like the app and questioned for an effortless way to invite good friends. We’re regularly striving to make this the best working experience possible. With regards to the human trafficking smear marketing campaign — certainly, all those rumors massively impacted us but we’ll bounce again. It is been an extreme journey, and we’re committed to producing a earth in which your good friends are in your day by day daily life simply because it’s the earth we want to stay in!”
However, it’s not like shopper programs are not attracting attention amid a softening in the enterprise money investing ecosystem. Musical.ly is raising $100 million at a colossal $500 million valuation on the power of its engagement and consumer base. When that enterprise demonstrated it was capable to demonstrate a strong quantity of engagement, it’s not distinct if Down to Lunch can match that variety of swagger.
It is also not distinct if this is just a novel use case that rapidly captured a ton of attention before fading absent. Yo, a further trend, confirmed a very similar rapid increase to fame and drop off — and Yo was also capable to attract a smaller quantity of funding. But Down to Lunch may show to fill a large more than enough use case that it could attract financing and take off like a rocket at the time again.