Snapchat revealed to the US regulators that it has raised a whopping fund of $537 million in the equity funding round. The amount could surpass the $650 million mark without any hassles.
Snapchat has however not revealed the name of the company who bought stakes of the messaging service app. There are speculations that the deal could fetch Snapchat a substantial value of more than $15 billion, according to the media.
According to the US Media reports, the investor list of Snapchat’s fund raising included the like of Alibaba as well. At the beginning of the year, Alibaba had already promised an investment of $200 million in the messaging service company.
The CEO of Snapchat declared that the company is eyeing for a public offering, but it is not sure of when to launch it. Evan Spiegel, the CEO of Snapchat, stated that “We need to IPO, we have a plan to do that.” He said that at a code conference in California when questioned about the potential of a public offering coming to place soon. He also said that an IPO is very important.
In 2013, Snapchat rejected the acquisition call by Facebook. Facebook reportedly offered $3 billion to Snapchat for its takeover, but the company showed no interest in the offering made by the social media giant.
Snapchat was released in the year 2011 and it was an instant hit among the teenagers and adults in the US. Several new services were added to Snapchat in the recent past in order to boost its money making ability.
Snapchat is a great way to share videos or pictures with friends. There are as many as 100 million users who have downloaded Snapchat in their smartphones. It was only last year that Snapchat started showing ads in its app.