After much speculation, Twitter has finally announced the acquisition of Zipdial.
“Today is a big day in ZipDial’s history. We’re thrilled to announce that ZipDial has agreed to be acquired by Twitter!
This is a huge achievement for the entire ZipDial team, and an opportunity to reflect on everything we’ve accomplished since our start in 2010. The company was founded on the insight that consumers and brands in emerging markets behave differently and have different needs. We build for them and their unique behaviors.”
Why is Twitter acquiring Zipdial?
Twitter needs to bring more users to the platform, consume and importantly, engage (data : as per Twitter’s latest SEC filing, nearly 24 million users don’t tweet at all!)
“Our primary mission, bolstered by this acquisition, is to help every Indian with a mobile device get a great, relevant Twitter experience. We believe Twitter – a platform invented for SMS and rich in media – is a perfect match for India, a mobile-first country with a celebrated media heritage.” [official blog]
Zipdial will continue building upon the existing ZipDial platform, though will integrate with Twitter and help make Twitter’s unique, great content accessible to 100% of the world’s mobile users, including those in emerging markets who will be experiencing the mobile Internet for the first time.
The two companies earlier worked for promoting a few celebrity brands and this acquisition is part of Twitter’s focus on growing its customer base.
The amout hasn’t been disclosed – but it is being rumored to be in the range of $30-$40mn.
What’s important about this deal is that this isn’t an acqui-hire, but is driven by Twitter’s business/product need to increase/engage the userbase.
Zipdial has raised funding from Jungle Ventures, TimesInternet 500Startups and Blume.