Thousands of apps are released each year in the app store. They are one of the fundamental components of today’s technology.
Everything has an app, and our phones would be nearly useless if they didn’t. Applications for email, social media, education, and lifestyle are all easily accessible and frequently used.
Today, we’ll take a look at Sagoon, a social network app. Many of us, I assume, are aware of this or have seen commercials for it on social media.
What exactly is the Sagoon App?
Sagoon is a Nepalese app based in the United States. It has garnered a lot of popularity and has been adopted in nations like Nepal, India, and the United States. Shraddha Kapoor, a Bollywood actress, was present during the launch in India. Sagoon is a free Android-only software that allows users to connect, share, and earn.
Its smart coins are the feature that makes it stand out the most. A smart account can be activated, allowing users to collect and send currency. These coins can be redeemed for presents from the company’s partners later on. QFX movie tickets, Recharge cards, Foodmandu coupons, bhatbhateni, large bazaar, and other items are among the gifts available.
In January 2017, the web app was introduced, and the Android version was published in 2018. It has accumulated 5,429,597 users since then! These customers are from 145 nations, and they have attracted 4000 investors from around the world.
Another reason for the app’s uniqueness is the mini-IPO it launched.
The applicant had issued a mini IPO at a price of $30 per share, with a minimum investment of 30 shares. This was most likely done due of the company’s lack of finances, as we highlighted in our earlier piece about why corporations issue initial public offerings.
The Sagoon.com Story
There are several complaints about the app on the internet as well. Someone even dubbed it “Thagoon,” implying that it was a ruse.
The company’s accumulated loss towards the end of the year was $93 lakh, or Rs 1 billion, according to its 2019 financial report. The loss has become a burden for investors because the company has not generated any revenue. The majority of the company’s investors are Nepalis who are temporarily residing in other countries or Nepalis of Nepali ancestry who have obtained permanent citizenship in various countries.
Sagoon has had $11 million in its coffers for regular company operations since December 2019, according to a report submitted to the US Securities and Exchange Commission.
With this sum, it’s unclear how the company, which has locations in three countries, would be able to cover costs such as employee salaries and administrative costs.
Another reason it is regarded as hazardous is that it uses deceptive marketing to recruit investors. According to Nepal’s Centre for Investigative Journalism.
The 16th of July. Sagoon secured a contract with NRNA-Britain in 2018 to supply a $100,000 share. Through the social credit it earned by helping the social organization, Sagoon was able to raise hundreds of thousands of dollars from Nepalis in the United Kingdom. However, NRNA-Britain has yet to receive either the portion or the money promised.
According to a previous president of NRNA-Britain, “British legislation prohibits NRNA-Britain from purchasing shares in any private company.” “It was basically a ruse by Giri to sway the leadership at the time and sell shares.”
Former president of NRNA-Britain, Surya Gurung, is the current global coordinator of Sagoon. He claimed that the failure to release the shares in accordance with the contract was due to legal issues.
Indeed, the investment in the Sagoon app caused such turmoil that Nepal’s Board of Security issued a public statement stating that it would not invest in the app. It caused much consternation, and Nepalese authorities announced that investing in the program is unlawful, and that investors will not receive legal assistance.
The Sagoon was a one-of-a-kind social media software that was actually enjoyable for users. It was rapidly growing and held a lot of promise for further development.
However, it did not manage its money correctly, and as a result of the investment shambles, it was brought to its knees. We hope that businesses learn from their mistakes and improve.