Skout, Inc.

About Skout, Inc.

Skout, Inc. operates as a location-based social networking and dating application, established in 2007 by co-founders Christian Wiklund and Niklas Lindstrom. Initially conceived as a mobile social network, the company pivoted in 2009 to focus on dating and people discovery after observing that over 80% of its user base was already using the platform for flirting and dating. This strategic shift proved pivotal, addressing a market need for more spontaneous, location-based connections, diverging from traditional, profile-heavy dating sites.

The founders, both originally from Sweden and having met in Silicon Valley, brought their experience from the mobile and tech sectors to Skout. Lindstrom had a background in software engineering for mobile devices, while Wiklund served as CEO, guiding the company's strategy. The early years were a struggle, with the company nearly failing before gaining traction. A significant milestone occurred in April 2012 when Skout secured $22 million in a Series B funding round led by Andreessen Horowitz, which enabled the company to scale its operations significantly after having previously raised $4.6 million in angel investments.

Skout's platform, available on iOS and Android, utilizes a user's phone GPS to help them discover and connect with other users in a general vicinity, without revealing precise locations. The application facilitates communication through instant messaging and virtual gifts. Its business model is freemium; the app is free to download and use but generates revenue through several streams. These include paid subscriptions for an ad-free experience and premium features, as well as in-app purchases of a virtual currency, known as "Skout Points" or "Diamonds," which users can spend to boost their profiles or send gifts.

Over the years, Skout expanded its portfolio by acquiring Nixter, a nightlife app, and launching Fuse, a group messaging app. In June 2016, Skout was acquired by MeetMe, Inc. (now The Meet Group) for approximately $55 million in a cash-and-stock deal. This acquisition was part of a larger consolidation in the social discovery market, creating a combined entity with a significantly larger user base. Skout continues to operate as a distinct brand within The Meet Group's portfolio, which itself was later acquired by ParshipMeet Group.