By Kat Asharya | Thu Aug 26, 2010 11:56 am |
GroupMe has raised $850,000 from investors to develop an application that enables group chat through text messaging and voice calls from any phone in the world.
The app will allow users to sign up for a group chat via mobile web. Each group is given a unique SMS number that allows users to add friends to the group via text reply. Texting the unique number then broadcasts SMS messages to the entire group. Users can also initiate group voice chat by calling their group's unique GroupMe number.
The New York-based startup developed the product to be used with existing simple technologies like text and voice. GroupMe cofounders, Jared Hecht, former Tumblr employee, and Steve Martocci, former Gilt Group engineer, believe that the service will attract a larger following with this simpler approach to mobile group chat.
"We're coming at this space from the lowest common denominator up," Hecht said. "We want stuff that works on every phone, and we want to build on top of that. Most people start with smartphones, but we're building from the bottom up."
The product was created during the Techcrunch Disrupt hackathon in May. GroupMe has since hired three employees.
In addition to the mobile-based app, the company is building capabilities for feature phones as well. While currently only available in the U.S., GroupMe's compatibility with feature phones presents a significant market opportunity in areas where smartphones are not widely used. A collaboration with Location Labs will also add geolocation capabilities to GroupMe.
Currently in alpha, GroupMe expects to roll out their beta version in the next couple of months. The startup will develop the service quickly as it solicits user feedback. The company also plans on monetizing conversations with contextual advertising.
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