GroupMe Raises $10.6M, Hires More Staff, and Has No Plans for Revenue in the Next 9 Months

Investors continued to back group texting startup GroupMe this week to the tune of $10.6 million, despite the year-old startup’s lack of revenue plan.

Co-founder Jared Hecht announced on the company blog that GroupMe closed a second round of funding, with investments coming from Khosla Ventures, General Catalyst, First Round Capital, and several first-round partners this week.

The New York-based GroupMe, which is built on a mobile messaging platform from Twilio, a San Francisco-based startup, is focused entirely on building up its service, which is free for users. Hecht said the company wouldn’t be ready to figure out how to make money for at least another nine months, according to Venture Beat.

“We compressed our 18-month road map into 9 months and we’re still finishing that up before we even consider thinking about revenue,” said Hecht.

Twilio, which gives programmers easy access to phone-based services such as voice and texting, normally charges two cents to send or receive texts. Whatever bulk discount it offers is being eaten by GroupMe.

GroupMe has plenty of growing room. The company is less than a year old, having gotten its start back in May at a TechCrunch Hackathon. It gained $850,000 in investor support in August, and high praise from reviewers. The company also announced that it had hired three new staffers, and is actively looking for more.