Telegram, the popular messaging app with over 800 million monthly users, this week raised $210 million through bond sales. This brings the total amount of debt financing raised by the company to over $1.2 billion. Telegram issued bonds worth $270 million to some investors, including its founder and CEO Pavel Durov, who personally bought about a quarter of the new Telegram bonds.
The bonds were purchased by “well-known funds with stellar reputations” that specialize in bonds, according to a company spokesperson. The new financing aims to take Telegram closer to the “break-even” point, as the company is still not profitable. Durov claimed Telegram “closer to profitability in absolute numbers” than competitors, including Twitter and Snap.
Telegram continues to experience rapid growth, adding over 2.5 million users daily. The messaging app has become increasingly popular due to its focus on privacy and security, user-friendly interface, and innovative features. Telegram has also been expanding its offerings, including the launch of its Telegram Open Network (TON) blockchain platform.
TON is designed to support a wide range of decentralized applications and services, and the platform’s native token, Toncoin, is loosely linked with the messaging app. Telegram raised over $1 billion in debt financing by selling 5-year pre-IPO convertible bonds more than two years ago. The company has been using the funds to invest in its growth and expand its offerings.
The new bond sales come at a time when interest rates have gone up significantly since 2021, which has resulted in a different issue price for the bonds, according to a company executive. Several other social media startups, including Twitter, Discord, and Reddit, have seen their valuations slashed by mutual fund investors after Meta and Snap shed tens of billions of dollars in value in the public market.
In summary, Telegram’s latest bond sales have raised $210 million from a group of sophisticated global funds specializing in bonds. The new financing will help take the company closer to profitability and support its ongoing growth and expansion.
As Telegram continues to innovate and expand its offerings, it is quickly becoming a significant player in the tech and business world. The company’s focus on privacy and security, user-friendly interface, and innovative features have made it a popular choice among consumers and businesses.
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