WhatsApp

WhatsApp, officially known as WhatsApp Messenger, is a prominent instant messaging (IM) and voice-over-IP (VoIP) service owned by Meta, formerly Facebook. Launched in 2009, the application was created by Brian Acton and Jan Koum, who both previously worked at Yahoo!. Originally designed as a tool to inform users' contacts of their availability, it quickly evolved into a full-fledged messaging platform due to its popularity among early users.

The app allows users to send text and voice messages, share images, documents, locations, and other content, and make voice and video calls. WhatsApp is accessible on both mobile devices and computers, though it requires a mobile phone number to register. By 2015, WhatsApp had become the world’s most popular messaging application, surpassing 200 million active users and receiving significant investments, including $58 million from Sequoia Capital.

In 2014, despite financial losses, Facebook acquired WhatsApp for $19 billion. The platform continued to grow, reaching over 2 billion users by 2020. WhatsApp introduced several features over time, including end-to-end encryption, video calls, stickers, and group calls. However, it has faced criticism for spreading misinformation, particularly during the COVID-19 pandemic and in incidents of mob violence in India. Additionally, WhatsApp's use by extremists and criminal networks has drawn attention, with governments and law enforcement agencies seeking access to its data to combat illegal activities.

WhatsApp has also experienced regulatory challenges, notably being fined €110 million by the European Commission for sharing user data with Facebook without proper consent. The platform’s commitment to privacy through end-to-end encryption remains a point of both praise and controversy.

The application is particularly popular in India, with 487 million users, followed by Brazil and Indonesia. Despite its widespread use, WhatsApp is banned in countries like China and Iran due to political reasons. In 2018, both founders left the company, with Acton moving on to support Signal, another privacy-focused messaging app.

2009–2014: The Founding Years and Early Growth

WhatsApp was founded in February 2009 by Brian Acton and Jan Koum, both former employees of Yahoo! The inspiration for WhatsApp stemmed from Koum's purchase of an iPhone in January 2009, which prompted discussions with Acton about developing an app for the newly emerging App Store. Initially, WhatsApp was conceived as an app that would display statuses in a phone's contacts menu, allowing users to see if someone was at work, on a call, or otherwise engaged. This idea, however, evolved significantly over time.

The development of WhatsApp was a collaborative effort. Koum and Acton often met at the home of Koum's Russian friend, Alex Fishman, in San Jose, where they realised the need for an iPhone developer to advance their project. Fishman found Russian developer Igor Solomennikov on RentACoder.com and introduced him to Koum. This partnership led to the creation of the first version of WhatsApp, named to sound like "what's up."

WhatsApp was officially incorporated in California on February 24, 2009. The early versions of the app faced significant technical challenges, often crashing, which led Koum to consider abandoning the project. However, Acton encouraged him to persevere, a decision that would prove pivotal.

The launch of Apple’s push notification feature in June 2009 was a turning point for WhatsApp. Koum updated the app to notify users when their contacts' statuses changed. This feature was unexpectedly used by users to send custom status updates like "I woke up late" or "I'm on my way," marking the app's transition into a messaging platform.

The introduction of WhatsApp 2.0 in August 2009, which included a dedicated messaging component, led to a rapid increase in active users, reaching 250,000. Acton, who was initially working on another startup, decided to join WhatsApp, securing $250,000 in seed funding from five former Yahoo! colleagues and officially becoming a co-founder in November 2009.

WhatsApp's expansion continued with the development of versions for BlackBerry in December 2009, Symbian OS in May 2010, and Android OS in August 2010. Despite Google's acquisition offers in 2010, WhatsApp chose to remain independent. To cover the costs of sending verification texts, WhatsApp transitioned from a free service to a paid one.

By early 2011, WhatsApp was among the top 20 apps in the U.S. Apple App Store. In April 2011, Sequoia Capital invested $8 million in WhatsApp, acquiring over 15% of the company. By February 2013, WhatsApp had 200 million active users and was valued at $1.5 billion after Sequoia’s additional $50 million investment. Later that year, WhatsApp acquired Santa Clara-based startup SkyMobius, the developers of Vtok, a video and voice calling app.

By December 2013, WhatsApp claimed 400 million active users, solidifying its place as a dominant messaging platform despite recording $148 million in expenses, including $138 million in losses.

2014–2015: Acquisition by Facebook and Rapid Expansion

On February 19, 2014, Facebook, Inc. (now Meta Platforms) announced its acquisition of WhatsApp for $19 billion, marking the largest acquisition of a venture-capital-backed company at the time. This deal included $4 billion in cash, $12 billion in Facebook shares, and an additional $3 billion in restricted stock units for WhatsApp's founders. The acquisition was partly driven by data insights from Onavo, Facebook’s research app that monitored competitors and mobile usage trends.

Following the acquisition, WhatsApp experienced a brief outage that sparked user backlash on social media. Additionally, the announcement prompted many users to explore alternative messaging services, with Telegram claiming to have gained 8 million new users and Line 2 million.

At the Mobile World Congress in Barcelona in February 2014, Facebook CEO Mark Zuckerberg highlighted the acquisition’s alignment with Facebook’s Internet.org initiative, aiming to provide free basic internet services. Shortly thereafter, WhatsApp began working on introducing voice calls and expanding its presence on smartphones worldwide.

By August 2014, WhatsApp was the most popular messaging app globally, with over 600 million users. This number grew to 700 million by January 2015, with users exchanging more than 30 billion messages daily. By April 2015, WhatsApp had over 800 million users, and by September 2015, the figure had risen to 900 million. By February 2016, WhatsApp reached a milestone of one billion users.

During this period, WhatsApp also faced criticism for anti-competitive practices. In November 2015, it was discovered that the Android WhatsApp client made links to Telegram unclickable and uncopyable. Although WhatsApp did not provide an explanation, this move was widely viewed as an attempt to stifle competition.

2016–2019: Growth and Challenges

In January 2016, WhatsApp co-founder Jan Koum announced the removal of the $1 annual subscription fee to make the service more accessible, especially for users without payment cards. He also emphasised that the app would not display third-party ads, focusing instead on enabling communication with businesses.

In May 2017, the European Commission fined Facebook €110 million for providing misleading information during the WhatsApp acquisition. The Commission found that Facebook had falsely claimed it was technically impossible to combine user data from WhatsApp and Facebook, a claim that was contradicted in 2016 when WhatsApp began sharing user information with Facebook for targeted advertising.

In 2017, WhatsApp introduced a business platform for companies to provide customer service at scale, with airlines like KLM and Aeroméxico participating in the initial testing. In January 2018, WhatsApp Business was officially launched for small businesses.

In April 2018, Jan Koum announced his departure from WhatsApp due to concerns over privacy, advertising, and monetisation strategies under Facebook’s ownership. His exit, along with that of Brian Acton in 2017, marked the end of an era for WhatsApp’s original leadership.

By 2019, WhatsApp had continued to expand its features and user base. In November 2019, the company invested $250,000 in partnership with Startup India, offering Facebook ad credits to 500 startups. Additionally, WhatsApp announced the discontinuation of support for older operating systems by early 2020, focusing on enhancing its services for up-to-date platforms.

2020–Present: Evolving Features and Global Influence

In March 2020, WhatsApp played a crucial role during the COVID-19 pandemic, partnering with the World Health Organization and UNICEF to provide accurate information through messaging hotlines. The app also introduced features to help users verify the authenticity of information they received, combating the spread of misinformation.

In January 2021, WhatsApp introduced a controversial privacy policy update that allowed data sharing with Facebook, sparking a mass exodus of users to rival platforms like Signal and Telegram. The backlash led WhatsApp to delay the policy’s implementation and clarify that it would not apply in the European Union due to GDPR regulations.

In October 2021, WhatsApp was affected by Facebook’s worst outage since 2008, which also took down Instagram and Facebook services for several hours.

WhatsApp continued to innovate with new features, including an integration with JioMart in India in August 2022, enabling in-app grocery shopping, and the introduction of Communities in 2022, which allowed users to manage multiple group chats in a shared space. In 2023, WhatsApp introduced features like message editing, multi-device support, and voice status updates, keeping pace with competitors while maintaining its large user base.

In 2024, Meta announced that WhatsApp would comply with the EU's Digital Markets Act (DMA) by allowing interoperability with third-party messaging services, marking a significant shift in how users could communicate across platforms.

WhatsApp’s mission is to connect people globally by providing a simple, reliable, and private messaging platform. The company aims to empower individuals and businesses with seamless communication tools that are accessible on any device, enabling users to stay connected with their loved ones and communities. WhatsApp focuses on ensuring privacy and security, with all communications protected by end-to-end encryption, fostering trust and confidentiality.

WhatsApp envisions a world where communication barriers are eliminated, and everyone, regardless of location or background, has access to a fast, secure, and user-friendly messaging platform. The company aims to be the most trusted and widely used communication service globally, helping people and businesses connect effortlessly, whether for personal or professional purposes.

WhatsApp offers a variety of products and services that cater to both individual and business users. The core product is its messaging app, which allows users to send text messages, voice notes, and multimedia files, make voice and video calls, and share real-time locations. All messages are secured with end-to-end encryption to ensure privacy.

For businesses, WhatsApp provides WhatsApp Business, a platform designed to help small and medium-sized enterprises (SMEs) engage with their customers through secure and interactive messaging. It offers features such as automated responses, quick replies, and business profiles, making it easier for businesses to connect with clients and manage customer service.

Additionally, WhatsApp offers WhatsApp Web and Desktop, enabling users to access their chats from a computer, and WhatsApp Channels, which allow content creators and organisations to send broadcasts to large audiences. The platform continues to evolve with features such as voice and video calls, message editing, and multi-device support, catering to the growing needs of its users.