NGL acquisition raises fresh questions about the app’s future
NGL has been acquired by Mode Mobile, ending months of uncertainty around the controversial anonymous messaging app’s future. The deal answers common questions users have been asking: who owns NGL now, why was it sold, and what happens next after regulatory action? Mode Mobile, known for its ad-heavy smartphone rewards model, confirmed the acquisition on Friday. The move comes after years of scrutiny over NGL’s impact on teens and its growth tactics. While financial terms were not disclosed, the acquisition signals a strategic pivot for both companies. NGL once dominated App Store charts but later faced mounting backlash. This transition marks a critical turning point for a product that became both wildly popular and deeply criticized.
Credit: Jakub Porzycki/NurPhoto / Getty ImagesNGL’s rapid rise among teens fueled early success
NGL launched in late 2021 and quickly climbed the App Store rankings, especially among teenage users. The app allowed users to receive anonymous questions and messages, often shared through Snapchat and Instagram links. Its simplicity and viral loops helped it spread fast across school networks. For many teens, NGL offered a way to ask questions they felt uncomfortable attaching their names to. This anonymity helped drive engagement and daily usage. Influencers and classmates alike promoted their NGL links on social media stories. Within months, NGL joined a crowded category of anonymous messaging apps gaining traction at the time. That early momentum positioned the company as one of the fastest-growing social apps of its generation.
Anonymous messaging apps spark ongoing safety concerns
Despite their popularity, anonymous messaging apps have long raised alarms among parents, educators, and regulators. Critics argue that anonymity can enable bullying, harassment, and emotional harm, especially for minors. These concerns intensified after tragic cases linked anonymous messaging to teen mental health crises. Snapchat responded to pressure by banning third-party anonymous apps like NGL, YOLO, LMK, and Sendit from its platform in 2022. That decision followed a lawsuit alleging Snapchat’s role in a teenager’s suicide. Losing Snapchat distribution dealt a major blow to NGL’s growth. The episode highlighted how platform dependency can become a serious risk for social apps targeting young users.
Growth hacking tactics put NGL under scrutiny
NGL’s controversies extended beyond safety concerns into how the app attracted and monetized users. Reports revealed that NGL sent automated messages that appeared to be from real people. These fake prompts encouraged users to believe friends were messaging them anonymously. Some users then paid $9.99 per month for subscription hints to identify senders. In many cases, the messages they were trying to trace were not real. This tactic blurred ethical lines and triggered widespread complaints. Critics accused the company of manipulating users’ emotions for profit. The backlash damaged trust and attracted the attention of regulators.
FTC investigation delivers a major blow to NGL
After a two-year investigation, the U.S. Federal Trade Commission took decisive action against NGL in 2024. The agency banned NGL from offering its app to minors, citing deceptive practices and harm to young users. This move represented one of the FTC’s strongest interventions against a consumer social app. Regulators said NGL misled users through bait-and-switch tactics tied to fake messages. The FTC also highlighted internal communications that appeared to dismiss complaints. As part of the settlement, NGL paid a $5 million fine and agreed to comply with strict consumer protection requirements. The ruling fundamentally changed NGL’s addressable market.
Mode Mobile steps in with a very different business model
Mode Mobile, the company acquiring NGL, operates in a very different segment of the mobile ecosystem. The startup markets itself as a smartphone rewards platform that pays users for everyday activities like charging their phone or watching ads. Revenue primarily comes from heavy advertising placements and engagement incentives. Critics have described Mode Mobile’s approach as aggressive, but it has found an audience among users seeking small cash rewards. By acquiring NGL, Mode Mobile gains access to a recognizable brand with millions of past users. The deal suggests Mode sees value in reviving or repurposing NGL’s engagement mechanics. It also raises questions about how anonymity and ads might intersect.
Strategic motivations behind the NGL acquisition
For NGL, the acquisition offers a lifeline after regulatory restrictions limited its core audience. Joining Mode Mobile provides financial stability and infrastructure support. For Mode, the purchase could accelerate user growth or diversify its product portfolio. NGL’s viral design expertise may complement Mode’s monetization engine. The acquisition also allows Mode to test whether anonymous interactions can be reimagined for adults. However, success will depend on whether trust can be rebuilt. The brand’s past controversies still loom large. Any relaunch will need to demonstrate meaningful changes in product design and transparency.
Founders transition as ownership changes hands
NGL was founded by Raj Vir and João Figueiredo, who helped scale the app during its explosive early growth. With the acquisition complete, the founders are moving on from day-to-day operations. Their exit marks the end of an era for the startup. While they did not publicly comment in detail, the timing suggests the regulatory environment made continued independence difficult. Founder departures are common in acquisitions, especially when companies face reputational challenges. New leadership under Mode Mobile will now shape NGL’s direction. How much creative control Mode retains remains unclear.
What users should expect from NGL under Mode Mobile
Existing users are wondering whether NGL will change, shut down, or rebrand entirely. Mode Mobile has not announced immediate plans to discontinue the app. However, given the FTC ban on minors, any future version will likely target adult users. Advertising could become more prominent, aligning with Mode’s core revenue strategy. Privacy disclosures and consent mechanisms may also be updated to meet compliance standards. Users burned by past experiences will watch closely for signs of genuine reform. Transparency and safety will be critical if NGL hopes to regain credibility.
A cautionary tale for social apps targeting teens
The NGL acquisition serves as a broader lesson for the social media industry. Rapid growth driven by viral tactics can mask deeper ethical and regulatory risks. Apps built around anonymity face unique challenges when minors are involved. Regulators are increasingly willing to intervene when consumer harm is alleged. For startups, sustainable growth now requires trust, transparency, and safety by design. NGL’s journey from breakout hit to regulatory target underscores that reality. As Mode Mobile takes the reins, the industry will be watching closely. Whether NGL can reinvent itself or fade into cautionary history remains an open question.
