TikTok’s parent company, ByteDance, recently made the decision to shut down LetsChat, an instant messaging platform that was once anticipated to compete with WhatsApp and Telegram in Africa.
This move was officially announced on Saturday, March 23, 2024, through a statement posted on LetsChat website.
The journey leading to the closure of LetsChat began earlier, on February 26, 2024, when the app was removed from various app stores. This decision effectively prevented new users from downloading the app.
Additionally, existing users found themselves unable to log in as usual after the shutdown. ByteDance also ceased the reward tasks within the app, opting instead to distribute any accrued rewards as credit.
Users were encouraged to pay attention to their wallet balance and make any necessary withdrawals before the app’s removal from the app stores on February 26, 2024.
Prior to this decision, ByteDance had invested considerable resources into LetsChat’s success in Africa. This included a three-year effort that involved hiring both full-time and short-term contract staff in Nigeria.
Explaining the rationale behind shutting down LetsChat in Nigeria, a ByteDance spokesperson, in an email to Rest of World, emphasised the company’s desire to allocate its resources towards more promising ventures.
This strategic decision was made after careful evaluation of their business objectives.
LetsChat was launched by ByteDance in March 2021 with the aim of providing young Africans with a messaging platform that was efficient in terms of data usage.
The app boasted features such as text messaging, free voice and video calls, and even in-app games. To promote the app, ByteDance enlisted the help of popular Nigerian-based social media influencers like Adebowale Adedayo (Mr Macaroni), Chukwuebuka Amuzie (Brain Jotter), and Chinonso Egemba (Aproko Doctor).
Despite these efforts, LetsChat faced challenges. In 2022, the app’s teams visited various Nigerian schools to encourage students to use the platform, but this wasn’t enough to sustain its growth.
By the time of its shutdown, LetsChat had accumulated nearly 7 million downloads, with the majority coming from Nigeria, Mali, Angola, and Côte d’Ivoire.
Data from Sensor Tower and SimilarWeb highlighted the app’s struggle to retain users. Monthly users on the platform plateaued at around 440,000 in December 2021, while downloads experienced a 30% decline year-on-year in 2022.
Moreover, between December 2023 and February 2024, monthly users dropped from 125,150 to 83,412. In contrast, WhatsApp maintained a strong presence in Africa, boasting 146 million active monthly subscribers.
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