Anonymous messaging app NGL, which quickly rose to prominence among teens before becoming embroiled in controversy, has been acquired by Mode Mobile, a startup known for its ad-supported "EarnPhone" devices. The acquisition, announced by NGL on Friday, brings together two companies with distinct yet similarly aggressive approaches to user engagement and monetization.
Launched in late 2021, NGL rapidly climbed the App Store charts, joining a wave of anonymous social apps popular with teenagers for sending and receiving questions and messages. However, its existence has been largely defined by a series of controversies.
Anonymous messaging platforms like NGL have long been problematic due to their potential to foster cyberbullying. This concern led Snapchat to ban third-party anonymous apps, including NGL, LMK, Sendit, and YOLO, from its platform in 2022. This decision followed a lawsuit filed by a parent alleging Snapchat's role in her teenage son's suicide.
NGL itself faced significant backlash for its "shady growth hacking tactics." The app was found to send automated, fake messages to users, designed to appear as if they originated from real people. Some users were then enticed into paying a $9.99 monthly subscription for "hints" about the senders of these fabricated messages.
The app's practices eventually drew the attention of regulators. In 2024, following a two-year investigation, the FTC announced a ban on NGL offering its app to minors—a rare and drastic intervention aimed at protecting young users from harmful social media experiences.
"NGL’s bait-and-switch tactic prompted many consumers to complain, which NGL executives laughed off, dismissing such users as ‘suckers’," the FTC stated at the time. NGL subsequently paid a $5 million fine to the FTC and agreed to comply with its demands.
According to Business Insider, NGL's two founders, Raj Vir and João Figueiredo, are departing the company. The remaining three employees will transition to Mode Mobile.
Mode Mobile's "EarnPhone" Model
Mode Mobile operates by offering a smartphone, dubbed the "EarnPhone," which features "built-in earning features." The company claims users can earn money by engaging in everyday phone activities such as listening to music, playing games, and browsing the web. Mode Mobile's investor materials indicate that its revenue is generated from "digital advertising partners" who "pay for user attention and engagement." Essentially, while users' phones are consistently exposed to advertisements, they might earn a modest sum—enough, perhaps, to cover a round of drinks.
Given NGL's controversial history of dubious growth hacking and Mode Mobile's ad-centric model, the partnership appears to be a fitting alignment of business strategies. The specific terms of the sale were not disclosed.
