Cloud-based team messenger platform Flock has received another tranche of investment from Bhavin Turakhia. Turakhia has already invested $20 million into Flock. Growth has now doubled and this has led Turakhia to invest another $25 million into Flock.
The money is to launch Flock into new markets such as Brazil and Russia. Both countries are target areas for Flock as it looks to overhaul established competitor Slack. It might have a way to go here. In a report from DMR, Craig Smith says that Slack has over 5 million users. This is up from 16,000 users when it launched three years ago. It has also managed to convert 1.5 million of those users into paying customers.
Can Flock overhaul its competitors?
The challenge for Flock in overhauling Slack is not just growth but those paying customers. It is also chasing market share at a time when the bigger software players are entering this space. Microsoft is beginning to push Microsoft Teams which will gain market share. Microsoft also has Skype for Business which is currently seen as the leader in this space.
Flock also needs to be able to compete with Atlassian HipChat and Workplace by Facebook. Both of these have small numbers at the moment but are well funded and expected to grow. It will be interesting to see how much more Turakhia is willing to invest in Flock to help it take on other team messenger products.
Adding new features to secure market share
The money from Turakhia is not just about building new markets. A tranche of it will be used to deliver new product features for its users in the UK and Spain. Among those updates are:
- The Public Channels feature enables users, especially those with growing teams, to easily discover and join meaningful conversations
- Team admins can use the one-way announcement channel to broadcast information that impacts entire teams, departments or companies
- The update on shared to-dos enables users to assign tasks with due dates to anyone, including themselves, making it easier to manage their teams’ schedules and tasks
- The favourites app lets users bookmark important messages in a chat so that they can easily refer back to it at any time
The company has already seen substantial growth since Turakhia invested $20 million. His willingness to put in more money based on a doubling growth is good news for the company and its users. Turakhia talked about Flock in an Enterprise Times podcast when the product launched in the UK. The question is whether his Midas touch can give Flock the support it needs to take on Slack, Microsoft, Google, Facebook and Atlassian.