• Tuesday, April 16, 2024
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Telegram nears profitability, eyes IPO

Telegram nears profitability, eyes IPO

Telegram, a messaging app with 900 million users, is considering an Initial public offering (IPO).

“The main reason we started to monetise is that we wanted to remain independent. Generally speaking, we see value in [an IPO] as a means to democratize access to Telegram’s value,” Pavel Durov said during an interview with the Financial Times.

According to Durov, the company is nearing profitability and has been approached by investors with valuations of over $30 billion. He noted that Telegram sees an IPO as a way to remain independent and give users a chance to own part of the company.

As part of plans to increase its revenue base, Telegram recently launched a premium subscription, and within months, it crossed the mark of one million paid users. It also offers ad solutions for one-to-many channels and plans to launch ad revenue sharing with channel owners this month.

Durov told FT that ad solutions are currently limited to specific geographies, and the company mandates agencies spend between €1 million and €10 million. He noted that Telegram wants to expand ad offerings globally this year to accommodate small-ticket spenders.

“If Telegram does go public, it is likely to list in the United States. The company has already raised $2 billion in debt financing and is considering a smaller equity raise to fund its artificial intelligence ambitions,” he added.