Wattpad Acquisition, Valuation, Funding & Investors
Wattpad was acquired by NAVER for $600M in January 2021.
About Wattpad
Wattpad is a Toronto-headquartered storytelling platform hosting user-generated fiction across web and mobile apps. The company operates Wattpad Studios co-producing adaptations with Netflix and Paramount, alongside Tap for interactive chat stories. Wattpad Brand Solutions delivers sponsored content campaigns. Founded in 2006, it licenses IP to publishers like Harlequin.
Founded
2006
HQ
TorontoWebsite
Status
Acquired
Customer focus
B2C
Revenue model
Advertising, Subscription
Revenue
$24M (Jan 2018)
Valuation
$398M (Jan 2018)
Wattpad Acquisition
Wattpad was acquired by NAVER for $600M on 20 January 2021.
Before the acquisition Wattpad had raised $97M across 2 funding rounds.
Wattpad is a global multi-platform entertainment company and leading social storytelling platform based in Toronto, with over 90 million users and 5 million writers contributing to the site. The platform is best known for genre works, particularly young adult fiction, and had produced or inspired approximately 1,500 works adapted into books, films, or television series worldwide. NAVER, South Korea's leading internet conglomerate and home of the WEBTOON digital comics platform, acquired Wattpad in a $600 million cash and stock transaction announced in January 2021 and completed in May 2021. The acquisition combined two major entertainment and storytelling platforms with complementary strengths, creating a global multimedia entertainment company with a combined user base of over 160 million monthly users. Wattpad added expertise in machine learning, IP discovery, and data-backed TV and film development to NAVER's portfolio, while remaining headquartered in Canada and operating independently under the continued leadership of co-founders Allen Lau and Ivan Yuen.
| Acquirer | Date | Type | Price |
|---|---|---|---|
| 20 Jan 2021 | Strategic M&A | $600M |
Wattpad Valuation
Wattpad is currently valued at $398M, based on its undisclosed-stage round in January 2018.
The $51M round was led by Tencent, with participation from Kickstart Ventures, Canso Investment Counsel, Peterson Group, The Raine Group, BDC Capital and 1 other investor.
Wattpad valuation by funding round
| Date | Stage | Valuation | Revenue Multiple |
|---|---|---|---|
| Jan 2018 | Undisclosed stage | $398M | 16.6x |
Wattpad Revenue
Wattpad's latest recorded revenue is $24M, as of its undisclosed-stage round in January 2018. At a $398M valuation, that implies a 16.6x revenue multiple.
Wattpad revenue by funding round
| Date | Revenue * | Valuation | Revenue Multiple | Stage |
|---|---|---|---|---|
| Jan 2018 | $24M | $398M | 16.6x | Undisclosed stage |
* Revenue (or ARR) figures are the values recorded alongside each funding round. Typically run-rate revenue at the time of the deal, or a reported LTM (last 12 months) revenue.
Wattpad Funding History
Wattpad has raised a total of $97M across 2 funding rounds.
Wattpad's first fundraising round was a $46M Series C in April 2014. The most recent completed round was a $51M undisclosed-stage round in January 2018.
Wattpad funding rounds
| Date | Stage | Investors | Raised | Valuation | Deal Summary |
|---|---|---|---|---|---|
| Jan 2018 | Undisclosed stage | Tencent (lead); Kickstart Ventures; Canso Investment Counsel; Peterson Group; The Raine Group; BDC Capital; Golden Ventures | $51M | $398M | Wattpad, a Canada-based online publishing platform, enables writers to publish and share stories with a personalized recommendations system, serving a user base of about 65 million and storing over 300,000 stories as of January 2018. The company raised $51 million USD ($61.25 million CAD) in a Series C funding round on January 17, 2018, led by Tencent with participation from BDC Capital, Canso Investment Counsel, Golden Ventures, Kickstart Ventures (Globe Telecom), Peterson Group, and The Raine Group. Proceeds funded recruitment, machine learning, interactive storytelling, and expansion into TV, film, digital media, and publishing to adapt user-generated content. At the time, Wattpad reported over 65 million global users with 40% community growth in 2017 and more than 400 million story uploads. Investments in machine learning improved personalization, reader engagement, writer monetization, and content trend discovery for entertainment adaptations. Tencent President Martin Lau highlighted Wattpad's role in transforming entertainment discovery. The platform had raised nearly $118 million total prior to this round, building on earlier investments from Union Square Ventures, Golden Ventures, Khosla Ventures, OMERS Ventures, and others. This funding supported Wattpad's evolution from a storytelling community to a multiplatform entertainment company connecting creators with global audiences and Hollywood. |
| Apr 2014 | Series C | OMERS Ventures (lead); Union Square Ventures; August Capital; Northleaf Capital Partners; Khosla Ventures; Framework Venture Partners; Raine Ventures; Version One Ventures; Golden Ventures | $46M | - | Wattpad is a social storytelling platform where users write, share, and read stories, building a community around user-generated content. In April 2014, it raised a $46 million Series C funding round led by OMERS Ventures, with participation from August Capital, Raine Ventures, Northleaf Venture Catalyst Fund, and existing investors including Framework Venture Partners (implied), Golden Ventures, Khosla Ventures, Union Square Ventures, and Version One Ventures. The funds were intended to hire more product developers and staff to grow and manage the user community. At the time, Wattpad reported 25 million monthly active users, up significantly from 6-7 million during its prior $17.3 million Series B in June 2012, with strong engagement measured by time spent on site. The platform had experimented with revenue generation through 'Fan Funding,' a crowdfunding model for books by its authors that debuted in August 2013; all pilot projects met their goals, though it was paused for adjustments. It also derived some revenue from search, but the priority remained user growth over monetization. This round built on earlier funding, including a $3.5 million Series A in 2011 and the 2012 Series B led by Khosla Ventures. Subsequent rounds included a $51 million raise in January 2018 at a post-money valuation just under $398 million, led by Tencent and others, bringing total funding to $117.8 million by then. Wattpad was later acquired by Naver in 2021 for $600 million. |
Who has invested in Wattpad?
15 investors have backed Wattpad across its funding rounds, including Golden Ventures, Khosla Ventures, Tencent, BDC Capital, Union Square Ventures and OMERS Ventures.
Lead investors include Tencent and OMERS Ventures.
Wattpad Investors
| Investor | HQ | Rounds | Role | First check |
|---|---|---|---|---|
| Toronto | 2 | Participant | Apr 2014 | |
 Manila | 1 | Participant | Jan 2018 | |
| Toronto | 1 | Participant | Jan 2018 | |
 New York City, NY | 1 | Participant | Apr 2014 | |
| San Francisco, CA | 1 | Participant | Apr 2014 | |
 Shenzhen | 1 | Lead | Jan 2018 | |
| Toronto | 1 | Participant | Apr 2014 | |
 Hong Kong | 1 | Participant | Jan 2018 | |
| New York City, NY | 1 | Participant | Jan 2018 | |
| San Francisco, CA | 1 | Participant | Apr 2014 | |
| Toronto | 1 | Participant | Apr 2014 | |
| San Francisco, CA | 1 | Participant | Apr 2014 | |
| Toronto | 1 | Lead | Apr 2014 | |
This data is available for Pro users. Sign up to see all 15 Wattpad investors. Start Free Trial | ||||
Benchmark 350K+ Funding Rounds and Disclosed VC Valuation Multiples
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Start Free TrialAcquisitions by Wattpad
Wattpad has acquired 1 company to date.
Last acquisition by Wattpad was on July 3rd 2014. Wattpad acquired Redroom.com for undisclosed valuation.
Latest Acquisitions by Wattpad
| Description | Redroom.com is a San Francisco-based online platform extending the Red Room Writers Society founded in 2002. It provides virtual writing studios, workshops, coaching, and editing services to professional and aspiring authors worldwide. The service emphasizes dedicated writing time over instruction, serving over 400 writers since inception through its physical studios in a 1904 Bay Area mansion before transitioning online in 2008. Redroom.com features published authors' acknowledgments and maintains ties to Litquake festival and San Francisco's Literary Map. Media coverage includes San Francisco magazine's Best of the Bay 2005 and California Lawyer. |
| HQ Country | |
| HQ City | Amarillo, TX |
| Deal Date | 3 Jul 2014 |
| Valuation | undisclosed |
| EV/Revenue | |
| EV/EBITDA | |
This data is available for Pro users. Sign up to see all Wattpad acquisitions and their M&A valuation multiples. Start Free Trial | |
Wattpad Competitors
Wattpad competitors include listed companies like Saregama India and Cover, and private ones like Pocket FM, Caffeine, Rilla and iQiyi Sports.
| Company | HQ | Status | Revenue | EBITDA | Valuation | Revenue Multiple |
|---|---|---|---|---|---|---|
 India | Private | $150M | - | $750M | 5.0x | |
| San Francisco, CA | Private | - | - | $600M | - | |
 Abu Dhabi | Private | $40M | - | $737M | 18.4x | |
| Beijing | Private | - | - | $486M | - | |
| India | Publicly listed | $100M | $36M | $979M | 8.6x | |
 Japan | Publicly listed | $317M | $34M | $677M | 1.9x |
Wattpad Public Comps
Wattpad is no longer listed, but its public comps include TV Tokyo Holdings, YG Entertainment, Weathernews, Viaplay, CJ ENM, Acast, NRJ Group, H & R Century Union, Tron and Cover.
| Last FY | EV/Revenue | EV/EBITDA | ||||||
|---|---|---|---|---|---|---|---|---|
| Revenue | EBITDA | Last FY | LTM | 2027E | Last FY | LTM | 2027E | |
| $1.1B | $104M | 0.3x | 0.3x | 3.2x | 3.4x | |||
| $397M | $73M | 1.3x | 1.2x | 7.1x | 7.4x | |||
| $157M | $38M | 2.9x | 2.9x | 11.9x | 11.9x | |||
| $1.8B | ($40M) | 0.7x | 0.6x | (29.5x) | 11.7x | |||
| $3.7B | $1.1B | 0.6x | 0.7x | 2.2x | 2.6x | |||
| $257M | ($1M) | 2.3x | 1.9x | (481.8x) | 25.7x | |||
| $390M | $74M | 0.3x | 0.3x | 1.6x | 1.7x | |||
| $79M | ($28M) | 8.0x | - | (22.6x) | - | |||
This data is available for Pro users. Sign up to see all Wattpad competitors and their valuation data. Start Free Trial | ||||||||
Common questions about Wattpad
| When was Wattpad founded? | Wattpad was founded in 2006. |
| Where is Wattpad headquartered? | Wattpad is headquartered in Toronto, Canada. |
| Is Wattpad publicly listed? | No, Wattpad was acquired by NAVER in January 2021. |
| Who acquired Wattpad? | Wattpad was acquired by NAVER in January 2021. |
| How much was Wattpad acquired for? | Wattpad was acquired for $600M in January 2021. |
| What is Wattpad's valuation? | Wattpad was last valued at $398M in its undisclosed-stage round in January 2018. |
| How much funding has Wattpad raised? | Wattpad has raised $97M across 2 funding rounds. |
| What was Wattpad's last funding round? | Wattpad's last funding round was a $51M undisclosed-stage round in January 2018, led by Tencent. |
| Who are Wattpad's investors? | Wattpad's investors include Golden Ventures, Kickstart Ventures, Canso Investment Counsel, Union Square Ventures, August Capital, Tencent, Northleaf Capital Partners, Peterson Group, The Raine Group, Khosla Ventures and 5 others. |
| What is Wattpad's revenue? | Wattpad's latest recorded revenue is $24M (January 2018). |
| What is Wattpad's revenue multiple? | Wattpad's latest valuation implies a 16.6x revenue multiple ($398M valuation on $24M of revenue). |
| Which companies are comparable to Wattpad? | Companies comparable to Wattpad include Pocket FM, Caffeine, Rilla, iQiyi Sports, Saregama India and Cover. |
| How many companies has Wattpad acquired? | Wattpad has acquired 1 company, including Redroom.com. |
See companies similar to Wattpad
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