Users, Billions, Facebook and Instagram.

Posted by Sujit Agarwal | Posted in Review, Social Media | Posted on 22-04-2012

This is a story of a billion dollar application.

Instagram is a FREE photo sharing application. This allows its users and ‘followers’ to capture photographs, apply effects to it and share it on social services.

In short : Snap a Picture > Add some cool effects > Share it on your internal network (Facebook, Twitter, Tumblr and Foursquare)

Small Briefings about the past of Instagram:

  • Developed by Kevin Systrom and Michel Krieger.
  • Launched in October 2010
  • Back In January Last year hashtags (#tags) were added to discover both the photos and people.
  • Later in September version 2.0 went live in App Store
  • April 2012, it was available in Android market


  • 4:3 respect ratio: Which is common for majority chuck of handset cameras.
  • Hashtags
  • New and Live Filters
  • Instant tilting
  • High Resolution Pics
  • Optional Borders
  • One click rotation

If this was just this simple application, what made Facebook buy for a whopping $1Billion?

Here is the reason!

The number one thing people do on Facebook is share photos. And Photos are going through mobiles in a big way.

Instagram added 1Million users in the first day it was on Android.

Now Facebook needs to show the investors the traffic after they go public, Instagram is that engine.

Facebook acquired it for $30 per user that is $30 * 33Million users = $1Billion. If Facebook was to be at a value of $80B a day before the takeover it would be then be $81B.

Well will Instagram be worth to Facebook? We will see. But the amount of investments, venture capitalist and awards it has been receiving it is definitely going to be a worth to Facebook.

To download the App visit the Instagram.

Reference: Business Insider and Wikipedia

Comments (2)

  1. Thanks for the information Sujit! Guess the Instagram download URL has a typo. Can you check?

  2. The link works good for me :)

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