After raising close to $485.6 million last year from big names like Yahoo and venture capital firm Kleiner Perkins Caufield & Byers, Snapchat is looking to raise new capital that will value it at a whopping $19 billion. Bloomberg citing anonymous sources have reported that if this funding comes through, it will make Snapchat the third-most valuable venture-backed company in the world. Also Read - Xiaomi Mi Watch Revolve Active India launch date revealed: When's the launch?Also Read - OnePlus Nord CE vs Redmi Note 10 Pro Max: Does 4G still outdo 5G at a lesser price?
If this is true, the only other companies ahead of Snapchat will be Uber and Xiaomi. Xiaomi is valued at $45 billion, while Uber s latest funding round values it at $40 billion. The company is looking to raise as much as $500 million in this round, which will value it at between $16 billion to $19 billion. Also Read - Xiaomi is hiding the front camera on its next Mi flagship smartphone
Snapchat was developed in 2011 by Stanford University student turned CEO Evan Spiegel. The IM app has grown a lot from just sending photos and videos that disappear in seconds. Snapchat has since then introduced many new features like Discover, Stories, and even introduced ads into its platform to earn revenue. The company is also roping its young users to create exclusive creative ‘possibly money making’ content.
In October, Snapchat faced a major setback when reports of about 200,000 accounts being compromised, surfaced. The company, in its defence said that the data was hacked from an unofficial app called SnapSaved, and advised its users to refrain from using any third party apps.
The last funding round had 23 companies involved in it. Apart from Yahoo, investors like Lightspeed Venture Partners, Benchmark and Institutional Venture Partners were also included.