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These YC founders pivoted 5 occasions earlier than constructing a social app that nabbed 300K customers and over $1M ARR in 6 months


A few months in the past, the founders behind YC-backed social app Candle have been in “pivot hell,” biking by greater than a dozen concepts after becoming a member of Y Combinator’s Fall 2024 batch, whereas the clock on their seed cash ticked down.

Alex Ruber, beforehand an engineer at Apple, and Parth Chopra, previously an engineer at Asana and Twitter, had constructed a number of tasks collectively, together with Encore, a conversational AI procuring instrument that acquired them into YC and with which they raised $2 million.

Nonetheless, whereas the tech labored, the unit economics didn’t, in response to Ruber.

“The secondhand procuring house is a troublesome market to start with,” Ruber informed TechCrunch in an interview. “To win, you both change into like Google Purchasing or construct a very robust market like Whatnot or eBay. That wasn’t a goal we needed to pursue.”

What adopted have been months of speedy experiments between final December and April, with pivots round concepts in areas like trend and sports activities, none of which caught. “We tried greater than 10 completely different concepts within the span of 4 or 5 months,” Ruber mentioned.

The strain started to pressure their very own relationships with associates and companions, a well-known story for a lot of early-stage founders. Mockingly, that stress sparked the concept that would lastly click on.

The primary model was easy: a swipeable deck of questions designed to spark conversations with their companions. Then an intern, now advertising lead on the startup, shared a TikTok concerning the app that went viral, unexpectedly gaining traction in Europe.

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Downloads surged, suggestions poured in, and the group leaned into the momentum. That early prototype has since developed into Candle, a light-weight, gamified app that helps {couples} and shut associates keep related.

Picture Credit:Candle

Six months after launch, Candle has grown to 300,000 customers, together with 150,000 {couples}. The corporate says greater than 250,000 are energetic every month, with a DAU/MAU ratio of round 50%, a powerful sign of engagement for a client social app and an early signal of day by day behavior potential. Candle has additionally ranked in Apple’s App Retailer high 25 a number of occasions.

Candle’s wedge is sustaining present relationships with small, day by day prompts and video games quite than serving to folks discover new ones. Customers reply fast questions, evaluate outcomes, share photographs, and hold a “streak” that exhibits how constantly they’ve checked in. The mechanics are textbook cell engagement aimed toward Gen Z and younger millennials.

In one other atypical transfer for a client social app—however yet another frequent amongst newer AI-native merchandise—monetization has come early. Candle’s month-to-month income just lately crossed $150,000, implying an annual run price above $1 million.

The app runs on a freemium mannequin: the free tier affords day by day prompts, picture updates, and core video games, whereas premium unlocks additional content material and options.

Whereas development stays a precedence for the startup, monetizing early is a powerful sign of product-market match. “On the finish of the day, this app helps folks strengthen their connections. Most of it’s free, however when customers pay for additional content material and options, it exhibits actual product-market match,” the CEO mentioned.

The months-old platform is among the few apps within the house, alongside Paired and Couple Pleasure, designed to make relationships extra enjoyable. These apps are tapping right into a cultural undertow the place post-pandemic work habits, solo meals, and limitless social feeds have hollowed out day-to-day connections and left folks within the U.S. lonelier than ever.

For Candle, the guess is that the subsequent wave of social at scale will probably be much less about broadcasting to strangers and extra about making it simpler to indicate up day by day for a number of shut folks. That perception, mixed with its founder and creator-led distribution engine throughout TikTok and Instagram, is how the group hopes to keep away from the destiny of many client social apps that surge rapidly solely to stall months later.

Nonetheless, the massive questions stay: sturdiness and depth. Can a day by day photo-and-game app maintain 12-, 24-, or 36-month retention curves? Can Candle develop from light-weight prompts right into a broader suite of “connection varieties” with out bloating the expertise? Ruber and CTO Chopra say that’s the roadmap: including extra methods to earn “sparks,” the app’s level system, for a wider vary of interactions, and introducing richer options that promote consistency.

The seed cash raised for the group’s earlier procuring app will now give Candle the sources to deliver on extra engineers, velocity up experimentation, and scale sooner. Current backers, together with Goodwater Capital, Pioneer Fund, Development Fund, and Y Combinator, are totally behind the brand new course, Ruber mentioned.

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