These YC founders pivoted 5 times before building a social app that nabbed 300K users and over $1M ARR in 6 months

Not long ago, the creators of the innovative social app Candle found themselves in a challenging situation, struggling to find a viable concept after joining Y Combinator’s Fall 2024 program. Alex Ruber, a former engineer at Apple, and Parth Chopra, who has a background with Asana and Twitter, had previously collaborated on various projects. Their initial venture, Encore—a conversational AI shopping tool—secured them $2 million in funding but ultimately faltered due to unsustainable unit economics. "The secondhand shopping market is incredibly difficult to penetrate," Ruber explained in a TechCrunch interview. He noted that the path to success either demands replicating a giant like Google Shopping or establishing a robust marketplace akin to Whatnot or eBay, neither of which aligned with their vision. Between December and April, the duo embarked on an intense phase of experimentation, cycling through over ten concepts in sectors like fashion and sports, yet none resonated. This relentless pivoting took a toll on their relationships, a common plight for early-stage entrepreneurs. Ironically, it was the friction among their circles that sparked the breakthrough idea. The initial concept was straightforward: a swipeable deck of questions to facilitate conversations with partners. An intern, now the marketing lead, contributed a TikTok video that unexpectedly went viral, particularly in Europe. This surge in interest led to a rapid increase in downloads and user feedback, propelling the team to refine their app into what is now known as Candle. Launched just six months ago, Candle has amassed an impressive 300,000 users, with 150,000 being couples. The app boasts over 250,000 active users monthly and maintains a daily active user to monthly active user ratio of around 50%, indicating strong engagement. Candle has also consistently ranked within the top 25 on Apple’s App Store. Candle's unique offering focuses on nurturing existing relationships through daily prompts and light-hearted games, rather than facilitating new connections. Users can engage with quick questions, compare results, share images, and maintain a streak that tracks their consistent interactions. This approach is designed to resonate with Gen Z and young millennials, enhancing mobile engagement. In a notable deviation from typical consumer social apps, Candle has prioritized early monetization. The platform recently reported monthly revenues exceeding $150,000, suggesting an annual run rate surpassing $1 million. Operating on a freemium model, the app allows users to access daily prompts and core games for free, while premium features are available for a fee. This early revenue generation serves as a promising indicator of product-market fit, according to the CEO, who emphasized the app's role in reinforcing connections. Candle stands alongside similar apps like Paired and Couple Joy, catering to a growing need for relationship-enhancing tools in a post-pandemic world where many individuals report feeling lonelier than ever. The founders believe that the future of social interaction will lean more towards fostering daily engagement among close relationships rather than broad outreach to strangers. However, lingering questions about the app's long-term viability remain. Can Candle maintain user engagement over extended periods? Is it possible to expand its offerings without overwhelming the user experience? Ruber and Chopra envision a roadmap that includes diversifying interaction types and enriching features to further enhance user consistency. With backing from previous investors, including Goodwater Capital and Y Combinator, the team is poised to accelerate development and growth for Candle.