5 Pivots to Profit: How a YC App Hit 300K Users & $1M ARR in 6 Months
▼ Summary
– Candle’s founders experienced “pivot hell” after their initial YC-backed shopping app failed due to poor unit economics, leading them to test over 10 different ideas in a few months.
– The app was born from relationship strain the founders experienced, starting as a simple deck of questions to spark conversations between partners.
– Candle is a gamified social app designed to help couples and close friends stay connected through daily prompts, games, and photo sharing, rather than helping users find new relationships.
– The app has achieved significant early traction with 300,000 users, strong engagement metrics, and has already begun monetizing, recently crossing $150,000 in monthly revenue.
– The company’s future roadmap focuses on sustaining long-term user retention by adding richer features and more interaction types without making the app bloated.
The journey from a struggling startup to a viral sensation is rarely straightforward, but for the team behind Candle, a series of strategic pivots led to remarkable growth. In just six months, this Y Combinator-backed social app amassed 300,000 users and surpassed $1 million in annual recurring revenue, demonstrating the power of adapting to user feedback and market demand.
Initially, co-founders Alex Ruber and Parth Chopra found themselves in what they describe as “pivot hell.” Despite their impressive backgrounds, Ruber as a former Apple engineer and Chopra from Asana and Twitter, their first project, an AI shopping tool called Encore, failed to achieve sustainable unit economics. “The secondhand shopping space is incredibly challenging,” Ruber explained. “Success requires becoming a giant like Google Shopping or building a massive marketplace, which wasn’t our goal.” This realization prompted a frantic five-month period where they tested over ten different concepts, ranging from fashion to sports, without any significant traction.
The breakthrough came from an unexpected source: personal strain. The pressure of constant experimentation began affecting their own relationships, which ironically sparked the core idea for Candle. They built a simple prototype, a swipeable deck of questions meant to spark deeper conversations between partners. An intern shared a video about the app on TikTok, and it unexpectedly went viral, particularly gaining momentum across Europe. This organic surge provided the validation the team needed to fully commit to the concept.
Candle has since evolved into a lightweight, gamified platform designed to help couples and close friends stay connected. Rather than focusing on helping people meet new partners, the app strengthens existing relationships through daily prompts, quick games, and photo sharing. Users can maintain a “streak” to track their consistency, employing classic mobile engagement tactics that resonate strongly with Gen Z and young millennials. The app’s impressive engagement is reflected in its metrics: over 250,000 monthly active users and a DAU/MAU ratio of approximately 50%, a strong indicator of daily usage potential. It has repeatedly ranked in the top 25 on Apple’s App Store.
What sets Candle apart from many consumer social apps is its early and effective monetization strategy. Operating on a freemium model, the app recently crossed $150,000 in monthly revenue. The free version includes daily prompts and core features, while a premium subscription unlocks additional content. This revenue stream so soon after launch is a powerful sign of product-market fit. “This app genuinely helps people strengthen their connections,” the CEO noted. “The fact that users are willing to pay for extra features shows real value.”
Candle operates in a niche alongside apps like Paired and Couple Joy, tapping into a broader cultural need. In an era defined by remote work, solitary meals, and endless social media scrolling, many people report feeling increasingly isolated. The app’s philosophy is that the next generation of social platforms will prioritize deep, daily interactions with a few important people over broadcasting to large audiences of strangers. This vision, combined with a distribution strategy led by founders and creators on platforms like TikTok and Instagram, aims to ensure lasting relevance beyond an initial growth spike.
Of course, significant challenges remain. The team must prove that a daily photo-and-game app can maintain user engagement over the long term, 12, 24, or even 36 months. Future plans involve expanding the app’s “connection types” without making it feel bloated, introducing more ways to earn “sparks” (the in-app point system), and developing richer features that encourage consistent use. Fortunately, the seed funding originally raised for their earlier shopping venture provides a solid runway to hire engineers, accelerate experimentation, and scale operations. Their investors, including Goodwater Capital, Pioneer Fund, Progression Fund, and Y Combinator, have fully endorsed the new direction, confident in the team’s ability to build a lasting business centered on human connection.
(Source: TechCrunch)