A Strategic Acquisition in the Ad-Driven Mobile Space
Anonymous messaging platform NGL announced on Friday that it has been acquired by Mode Mobile, a smartphone rewards company whose business model centers on advertising-heavy user engagement. The financial details of the transaction were not disclosed.
The acquisition brings together two companies that have both attracted attention for unconventional growth and monetisation strategies within the mobile app ecosystem.
NGL’s Rapid Rise — and Persistent Controversies
Launched in late 2021, NGL quickly surged up Apple’s App Store rankings, becoming part of a wave of anonymous Q&A and messaging apps that gained strong traction among teenagers. The app allowed users to send and receive anonymous questions, a feature that fueled rapid adoption — but also significant concern.
Anonymous messaging platforms have long been criticised for enabling cyberbullying among young users. In 2022, Snapchat banned third-party apps such as NGL, LMK, Sendit, and YOLO from its platform following a lawsuit brought by a parent who alleged the apps played a role in her teenage son’s suicide.
Growth Tactics Under Regulatory Fire
Beyond concerns around anonymity, NGL faced backlash over aggressive and misleading growth strategies. Reports revealed that the app sent users automated messages designed to appear as if they were sent by real people. Some users were then encouraged to subscribe to a $9.99 monthly plan to receive “hints” about who sent those messages — which were, in some cases, fake.
Following a two-year investigation, the U.S. Federal Trade Commission (FTC) announced in 2024 that it would ban NGL from offering its app to minors — one of the regulator’s strongest actions aimed at protecting young users online.
“NGL’s bait-and-switch tactic prompted many consumers to complain, which NGL executives laughed off, dismissing such users as ‘suckers’,” the FTC said in a statement at the time.
As part of the enforcement action, NGL paid a $5 million fine and agreed to comply with the FTC’s requirements.
Founders Exit as Team Joins Mode Mobile
According to Business Insider, NGL co-founders Raj Vir and João Figueiredo will depart following the acquisition. The app’s remaining three employees are set to join Mode Mobile, integrating NGL’s operations into the acquiring company.
Given NGL’s history of controversial engagement tactics, the deal appears aligned with Mode Mobile’s own ad-centric approach to user monetisation.
Inside Mode Mobile’s “EarnPhone” Model
Mode Mobile is best known for its smartphone product branded as the “EarnPhone,” which it markets as having “built-in earning features.” The company claims users can generate income by carrying out everyday activities such as listening to music, playing games, and browsing the web.
According to Mode Mobile’s investor materials, the company earns revenue from “digital advertising partners” that “pay for user attention and engagement.” In practice, this means users are exposed to a continuous stream of advertisements in exchange for small monetary rewards.
What Comes Next
While the acquisition price remains undisclosed, the deal highlights the continued consolidation within the ad-supported mobile app sector. It also underscores ongoing regulatory pressure on platforms that target or attract younger audiences — particularly those built around anonymity and engagement-driven monetisation.
How NGL will be repositioned under Mode Mobile’s ownership, especially in light of its regulatory restrictions, remains to be seen.
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