Kagi Reaches 50k Users
141 comments
·June 9, 2025demosthanos
jaggederest
I'm assuming they're somewhere north of $5m ARR and that's not a tiny number, even at a thoroughly sane P/E value you're looking at $50m+ of company value.
pjerem
I somehow doubt the usual approximations are working here.
Kagi probably have a user base of users who are highly attached to the product’s quality. Kagi could lose most of their paying customers should they ever fall into the wrong hands.
But I’m glad it’s like this. A good old company that just sell good products to their happy customers.
esseph
Would you mind explaining how you came to that number? I'm intrigued. Genuinely.
frabcus
Looks like the assumption is $100 / year for each user, which with 50k users makes the $5 million ARR.
Then you have to pick a finger in the air multiplier for the value of the business. A stockmarket listed SaaS company that isn't over-inflated might be 10x the revenue, so that would be $50 million valuation.
Kagi is small, but it must still have good margins. So maybe really it is 5x revenue in value, depends on lots of things! Who selling to, and predictions for long term growth.
ls-a
The small team is going to burnout soon. I checked there hiring description and it says something around the lines of expect a lot of work with little rest.
obtusifolia
Could you share a source for that? I checked a couple of their openings (e.g. [1]) and they didn't say anything like that.
[1]: https://kagi.peopleforce.io/careers/v/125936-core-back-end-t...
eviks
Search isn't that business since staying small means you won't be able to create a good index of the world. And you won't have enough resources for your browser.
patchymcnoodles
For me it is a great index, much better than all the alternatives. Especially against Google that is now filled with AI and Ads. Sometimes so bad, you really have to scroll down, to get to the first non-Ad link.
maelito
But it's not their index. Without Google or bing, they fall.
ulrikrasmussen
Why? I think that's an extraordinary claim.
eviks
Because it's expensive, and kagi still doesn't have one? And the browser is very incomplete? This is all pretty basic, how many global Web indices do you think exist?
0_gravitas
And yet, somehow, they've managed quite well :^)
eviks
They haven't, but also that wasn't the argument
Unearned5161
I love Kagi, and have been a proud user for almost a year now. Lately, however, the more I read about Vlad and the variety of things the company is working on, the more I get worried. My (potentially naive) hope is that more companies enter this sector of paid search engines and the competition helps iron out the kinks. I want nothing more than a good set of options to choose from.
erlend_sh
I’d be much more at ease with their long term prospects if they begun the process of transitioning to a cooperative or steward-ownership, so that they’re less at risk of CEO-capture.
SllX
I mean I'm fine with them as they are now, corporate-structure-wise. What happens if Kagi starts to suck? I stop paying for it and move on with my life, so rather than worrying about what could happen, I'll just enjoy it for what it is now.
If nothing else, Google taught me that just because something is great today doesn't mean it will necessarily be great tomorrow. I can't get attached.
dkh
Are you just worried about his/their divided attention or are there specific projects that concern you?
Unearned5161
I'm worried about certain projects, like maps, which while pretty, I still never use because it lacks basic functions like stackable filters when searching for restaurants, or navigation of any sort.
Also am worried about the move to mail, I already have fastmail, and kagi would need to create a heck of a mail client for me to even consider switching. I'd much rather have a company that does search very well, a company that does mail very well, and a good communication between the two.
And I also have less tangible worries about Vlad's demeanor when I see some of his writing in the feedback forum or discord. It comes across as ambitious but not very circumspect, but maybe that's what's necessary to make it in this sector. I won't pretend to have enough experience to offer much opinion on the matter, all I can say is that its unsettling at times.
maelito
I contacted the CEO to tell him more about my projet cartes.app but they were not interested. I don't understand why they have such a bad map.
mr_tombuben
Some people might have issue with their push into LLM AIs with their Assistant. I personally don’t care for it and am happy that by not using it I’m not subsidising other peoples use of the paid APIs they use. But I’ve seen some people take issue with the development time being taken up by it at all.
anon7000
It’s fair to be concerned, but web search is probably the most likely field to be completely disrupted by AI. I mean if I’m asking a question, and would find an answer in the first page of search results, it’s pretty likely AI surface the same information more quickly than me sifting through pages of search results.
So I think it’s fair for them to at least have people thinking about that. Plus, the features they have aren’t intrusive and are completely optional. Like, it’d be dumb for a company to not spend development time on a threat that has a decent potential to shrink their (already captured) market.
hobofan
I am one of those worried people (and have voiced that opinion here on HN before).
However they have been on that course for a good part of the last year though, and they ultimately deliver a good product, which is what matters at the end of the day. Kagi mostly feels "feature-complete", and I'd rather have them spend time on the AI projects than trying to be too inventive and overloading the core product, which is the route many other startups take when they get to that point.
fl0id
Yeah same. Super worried
theanonymousone
Convincing any one of those 50k people to ditch a free product for a paid one is a miracle by itself. Congrats to Kagi!
However, is there really no other model than these two, i.e. being 100% the product vs. paying the "full price" of the search?
Ma8ee
I didn’t ditch a “free” product. I ditched a product that I paid with my attention and time, which is something of the most valuable I have.
throwaway81523
I've been using paid email (fastmail) for quite a long time and it's fine, I use it dozens or hundreds of times a day and it's around $4 a month. Kagi is $10 a month and I'd use it a handful of times a week (based on trying their free 100 queries) if subscribed. Otherwise Duckduckgo suffices. I'm satisfied with duckduckgo in a way that I could never be with any "free" email service since DDG doesn't require a signup and doesn't supply long term storage.
burnished
I suspect the 'slippery slope' applies here
roughly
Advertising is a fungus. You let it into any part of your product and it’ll be everywhere before you know it.
UberFly
Sure. Kagi could just start showing ads to subscribers who only want to pay half price. That awesome Netflix model.
imafish
TV channels were doing this for decades before Netflix did.
lurk2
I never understood why cryptomining never took off. The biggest issue I have with paying for anything on the internet is that I don’t want to have to enter my payment details everywhere I go. If a service mines on a user’s machine, they just pay for it indirectly via their electric bill.
I guess the problem probably has to do with the value of the GPU cycles being lower than the served content. This is most apparent in the case of AI; e.g. if the mining lasts as long as the session, and the server runs 2 GPUs while the user is only running 1, then you can’t complete the “payment” unless the mining continues beyond the length of the session.
kqr
Most users are on a batteried device. I'm not sure they're willing to pay in battery time and health.
Tepix
Look at the actual numbers. There‘s a large percentage of mobile users. Then there are users on laptops with iGPUs. To crypto mine even 1 cent would take forever.
theanonymousone
Now that the AI overlords demand more and more training data, maybe we will start "paying" by annotating some unit of information, aka Captcha-style.
ed_mercer
Only 50k? They need to step up their game and scale more aggressively. I want them to kill Google. At this pace I’m afraid it will be a losing battle.
Osiris
I've been a paying member for a while now. I'm happy to support a company that isn't Google or Microsoft for search.
hmottestad
760 600 queries per day. That’s about 8.8 queries per second.
Per user it’s about 15 queries per day. I’m sure there will be some that are incredibly active and some that aren’t active at all, but 15 per day seems quite reasonable.
kqr
I think so too. Apparently I have an overall mean of 26 queries/day, with the lowest month the past year being 19 queries/day and the highest 35 queries/day. Most of this is during the weekday with software development work, but I also make web searches for all kinds of other things in my spare time.
I genuinely thought it would be higher, but I suppose bang patterns don't count.
(Posting this mostly so that people who are curious about subscribing to Kagi can get a sense of how many queries they're likely to need to use.)
rckclmbr
I have 515 since may 16 putting me as 22. So ya, math checks out. Love the service, been using them since March 2024
sshine
I’ve been measuring my token count and I believe they are making a small amount on me even though I’m not holding back my AI usage. I do pick the cheaper and faster LLMs when I can, but mostly to avoid the waiting of heavy models with extended thinking.
SietrixDev
You're probably aware, but they recently added the actual cost of used tokens on the Billing page. This is much better than the token count on its own.
sshine
By "I've been measuring my token count", I do mean "I've been reading my billing page and comparing my token count month over month", but thanks for pointing that out so it's clear.
What the billing page doesn't go into detail about is number of searches caused by The Assistant, number of FastGPT searches, and number of regular searches. I'm curious because I'd like to track my tendencies; whether I am slowly using AI more than search, or if it stays the same. And FastGPT is a grayzone.
kid64
But will Kagi survive the upcoming loss of the Bing Search API 2 months from now? I don't think I've heard the plan for that yet.
lazycouchpotato
Large customers like DuckDuckGo are unaffected by the API retirement [1]. I don't know if Kagi is one of them.
It seems that Kagi isn't expecting that things will change much [2].
[1] https://www.wired.com/story/bing-microsoft-api-support-endin...
[2] https://kagifeedback.org/d/7107-microsoft-bing-retiring-sear...
jwr
I'm a happy Kagi user. I really enjoy using a search engine that is just that: a search engine. No ads, no sponsored results, no junk, no garbage. Just the results that I'm looking for.
I am tired of being advertising meat, and I'm willing to pay to use the services that do not waste my time.
bicepjai
I tried Kagi a year ago and could not come to terms with nof searches as payment options .Constantly thinking about if I should search or not was a big reason. Now I use perplexity. Would love to try Kagi if payment plan changes
xigoi
You can get unlimited searches for $10/month.
stavros
I feel like I'm the only person who doesn't really see the appeal. I have subscribed multiple times in the past, including a free trial for three months that recently ended. It wasn't bad, but when the trial ended I just switched back to DDG and kind of... didn't think about it again?
climb_stealth
For me part of it is supporting a project that is worth getting behind. I like that someone goes against the big ad-supported players in a field where it would seem impossible.
Features like boosting the niche forums I browse for search results is just a bonus on top.
I agree that I could go back to DDG and not feel like I am missing too much, but that doesn't bother me.
jessekv
I have DDG as the default search in Safari (because Kagi is not an option, maybe it requires profit sharing with Apple?) and I often end up using DDG out of convenience while being a Kagi subscriber.
I agree there is not a lot of differentiation between stock Kagi search and DDG. DDG still has a few ads but it's not that annoying, perfectly usable.
Kagi's assistants are pretty interesting though. Recently I asked it to find back a post that I vaguely remembered. It managed to generate a bunch of Kagi searches with different keywords and narrow it down to an old tweet.
patchymcnoodles
Then maybe it is just not for you, completely fine :). I used DDG in the past, but didn't see a big improvement (it is better than Google though). Kagi really changed it for me and so I'm a paying user since a year or so.
smodo
The recent blog post discusses moving into the email space and suggests some interesting uses of LLM’s for handling mail (sorting and labeling rather than writing). I’ve been quite pleasantly surprised with the Kagi products so far and would probably consider their e-mailservice if it’s as good. However the hassle of switching email providers is of course around 100x the hassle of switching search…
chilldsgn
I've been on the free tier for a short time and really liking it. I just can't justify paying at least $5 a month (I live in South Africa) for this, so not switching to paid yet. It's just a bit too much with our exchange rate.
wtmt
I’ve never even tried the free tier of Kagi because it’s limited and because the paid tiers are expensive (just like in your situation). I’m not looking for a free solution and I do pay for email (though not like tens of dollars a month, which is expensive).
Kagi’s official position is not to support regional pricing (visit https://kagifeedback.org/ and search for “regional pricing” to go through the “Implement regional pricing” thread). The service is probably out of reach even for many people in the first world. Even its family tier is expensive.
Hopefully, when it reaches a much higher number of users, it’s able to reduce prices. Or it can just remain a niche service and potentially be disrupted by a competitor.
dkh
Just out of curiosity, what would you consider a reasonable price for such a service in your region?
wtmt
Not GP, and I’m in a totally different country than the GP, but I’d be willing to pay USD 2 a month for a duo plan. I’d be willing to pay on an annual basis too, since small monthly payments usually incur higher processing fees (percentage wise) for the seller. Just for comparison, this amount would be equivalent to a Spotify Premium Duo subscription (with its regional pricing).
tough
they should really move to geo-based pricing like some other SaaS do,
5usd in america aren't 5 usd in the rest of the world indeed
plutokras
They have fixed costs per query. Unlike VC-backed companies burning cash for market share, they need sustainable unit economics to stay profitable. This makes regional pricing hard to pull off.
I know I'm speaking form a position of privilege and this will be unpopular; but I'm not fond of subsidizing other users by paying premium prices for my subscriptions.
tough
I hadn't thought about that
TBH, if i where them i'd be trying to serve open source models from my own infra, much cheaper to pay per GPU's per hour and batch process all your users prompts, than leave that big 95% fat margins to OpenAI and Anthropic
But I guess they have customers who want those APIs anyways, idk, again, i thought they where a search service, not an ai company, so this sub for llms business deal is weird from that POV? like great that it works for them to get money/customers but that doesnt seem their main point of existing?
mkayokay
Also with regional pricing one must ensure the lock out all those people who want the service cheaper than in their country and try using VPNs or other means. Otherwise you loose even more money.
wtmt
The official response is that they won’t because 95% of their costs are in the search itself. I’m unable to figure out how to link to the forum thread, but you can visit https://kagifeedback.org/ and search for “regional pricing” to go through the “Implement regional pricing” thread.
Squarex
They probably have same costs for every user. They would be losing money if they charged significantly less for users in developing countries.
Note that despite the small number, Kagi is profitable (or at least they were as of a year ago):
> We are also thrilled to report that we have achieved profitability. This significant milestone is a testament to our sustainable growth and fiscal responsibility. It demonstrates that our approach of offering a premium, ad-free search experience resonates with users who support a service aligning with their values. Becoming profitable allows us to reinvest in the business, further enhancing our offerings and ensuring that we can continue to provide a top-notch search experience.
As long as they're profitable I don't mind at all if they stay small. They're extremely useful to me as it is, and their small size means they aren't targeted for SEO nonsense, so their methods to cut through all that still actually work in my experience.
Not every business needs to become a unicorn. Some businesses are better at small scales serving a specific niche, and by their report Kagi seems to have found their niche.
https://blog.kagi.com/what-is-next-for-kagi