Date
20 September 2017
Snapchat is said to have drawn 23 investors, including venture capital firm Kleiner Perkins. Photo: Bloomberg
Snapchat is said to have drawn 23 investors, including venture capital firm Kleiner Perkins. Photo: Bloomberg

Messaging app Snapchat raises nearly US$486 mln

Snapchat, the mobile messaging app that is popular with teens, has raised US$485.6 million in funding, valuing the firm at more than US$10 billion. 

The Los Angeles-based company, whose app facilitates sending annotated photos that disappear within seconds, said in a regulatory filing that it raised the money from 23 investors, Bloomberg News reported.

The filing is the first disclosure by Snapchat about its fundraising, which has been in process for months, the report noted.

Snapchat had earlier been in discussions with Alibaba Group to raise money at a US$10 billion valuation. While the talks with Alibaba ended, the US start-up drew other investors into the fundraising, including Yahoo Inc and venture capital firm Kleiner Perkins Caufield & Byers. 

According to a blog post on technology website TechCrunch, Snapchat had originally set out to raise US$40 million last year, but as demand for the round skyrocketed, and it decided to go for an ambitious US$900 million instead.

When that didn’t work out, it scaled back the fund-raising to nearly US$500 million, the report said.

Snapchat last year rejected a buyout offer from Facebook, judging the US$3 billion offer too low.

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RC

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