Monday 23 October 2017

Snapchat could be worth $19bn - double last month's value

People take pictures of the headquarters of SnapChat on the strand at Venice Beach in Los Angeles, California.
People take pictures of the headquarters of SnapChat on the strand at Venice Beach in Los Angeles, California.
Evan Spiegel of Snapchat

Snapchat is looking to raise more money from investors in a move that could value the photo messaging app at $19bn ($16.7bn), almost doubling its price tag in just a month.

Executives at the Los Angeles-based company are in talks with fund managers with a view to raising as much as $500m, Bloomberg reported.

If Snapchat raised the full amount, it would value the firm at $19bn, making it the third-largest startup backed by venture capitalists, behind tax-hailing app Uber and Chinese mobile phone maker Xiaomi.

It would also mark a huge jump from the $10bn valuation Snapchat handed last month when it announced it had raised $485.6m since April 2014 from 23 investors.

Snapchat famously spurned a $3bn takeover offer from Facebook in 2013 and became the world's fastest growing app last year, increasing its users by 56pc.

It said last August that it had 100 million monthly active users, but the figure is thought to be twice as big now. The app is particularly popular among youngsters.

Between 25pc and 40pc of teens in the UK, the US, Canada and Australia say they use Snapchat, according to GlobalWebIndex's latest social trends research.

Snapchat was dealt a blow in December after a cyber attack exposed the usernames and phone numbers of 4.6 million users. (Bloomberg)

Indo Business

Also in Business