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Applabs Technologies Has Stake In Chat Center, Hits 1 Million Downloads

Applabs Technologies (ASX:ALA) has revealed that one of its portfolio companies, Chat Center, has reached over one million downloads from users.

In addition to the milestone achievement, Chat Center users have now also registered well over one million unique names through the application.

Part funded by Google Ventures, Chat Center has developed software which allows users to chat with another user, irrespective of which chat app they use.

Therefore a user with the WhatsApp or Skype is able to chat with a user who has Viber.

Chat Center has also announced that it will begin selling premium names on the service for US$19.99 a year.

Chat Center has collected over 50 million trademarked words will now allow users to rent premium names.

With the launch of premium names, Chat Center has now transitioned to a "Freemium" business model and revenues will begin to flow as users transition to the premium service.

The premium name service will be particular useful to businesses who wish to be identified by key names.

Patrick Glovac, managing director, commented:

"To reach one million downloads after only launching the application three months ago is an amazing outcome for Chat Center.

Through the new premium names service, Chat Centre will be able to monetise the huge interest in the application immediately, which is inherently difficult in the mobile chat space."

Investment in Chat Center

In June 2014, Applabs invested US$50,000 into the Chat Center application 2014 Inc.

Applabs subscribed for US$50,000 of SAFE notes in 2014 Inc at a capped valuation of US$4,000,000.

The SAFE notes will convert at the same price as the next capital raising or on a US$4,000,000 valuation, whichever is lower.

Applabs has been able to participate in the second round seed raising for Chat Center on the same terms as Archimedes.

Only a select few investors were able to participate in the raising which included Greg Kidd (Twitter, Square & Ripple Labs), Inno Valley (a Gangzhou based Venture Capital Fund) and Archimedes Labs.

Chat Center was initially funded by Google Ventures along with True Ventures, Crunchfund and BetaWorks.

Multiple streams of income

Applabs has a unique revenue model that offers multiple revenue and capital gains opportunities.

In addition to its investment portfolio of meaningful stakes in early stage technology companies, Applabs also develops Apps on a fee for service basis, as well as providing finance and development for entrepreneurs to configure their own App ideas.

Then there is Applabs flagship offering called Home Open, which seeks to tap into the massive real estate advertisement market currently dominated by the $6 billion (ASX:REA).

Home Open is now live and available on the iOS and Android devices as well as the web.

With stage one development for the portal now complete, the company's focus will now shift to the continued agent registration process and upcoming consumer launch.

Notable agents that are already on-board include leading franchises such as Ray White, Raine & Horne, The Professionals and First National who in total have over 2,000 franchises across Australia.

A second version of the iPhone and iPad version of the portal is already well advanced and will be released shortly, in addition to further updates on the next stages of the Home Open roll out.

The Home Open portal is designed to aid those looking for a home to buy or rent to find nearby properties open for inspection.

It provides ease of use by allowing for fast searching by presenting users with the relevant properties without the need to trawl through thousands of listings without home opens.

Users will also be able to view a map of their current area with a display of nearby properties ready to inspect now or a little later. They will also be able to add properties of interest to their calendar.

HomeOpen is also integrated with all of the large real estate CRM platforms in Australia having received approval from MyDesktop on 1 July 2014.

The portal also seeks to bank on unhappiness from the real estate community against the dominance and cost of some competitor's portals.


Today's news that Chat Centre is exceeding expectations offers high hopes for an increasing valuation of Applabs portfolio investment, and will also give ASX investors' confidence in Applabs own investing acumen.

It is also a strong result reaching this number of downloads in just three months. While through the new premium names service, Chat Centre has an opportunity to monetise the large interest in the application almost straight away, which would be a coup in the mobile chat space.

With its Home Open portal now live and available for iOS, Android and the web, Applabs Technologies is now well on the path towards its goal of becoming a major real estate portal.

The company had $5.357 million in cash as of 30 June 2014, and is capitalised at just $9 million.

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