Telegram raised about $210 million through bond sales this week from a number of investors, including its founder and chief executive Pavel Durov.
The messaging app, used by over 800 million users each month, raised the capital by issuing bonds worth $270 million. “Because interest rates have gone up significantly since 2021, the bonds have a different issue price,” a company executive told TechCrunch.
Telegram is still not profitable and the new financing is aimed at taking it closer to the “break-even” point, said Durov, claiming that his app was “closer to profitability in absolute numbers” than competitors including Twitter and Snap.
A set of “well-known funds with stellar reputations” purchased the bonds, Durov said without identifying them. A company spokesperson told TechCrunch that these backers are “highly sophisticated global funds who specialise in bonds.”
“I personally bought about a quarter of the new Telegram bonds, investing tens of millions into Telegram’s growth. This comes in addition to the hundreds of millions I spent over the last 10 years to keep Telegram operational,” Durov added.
The app is adding over 2.5 million users each day, he added. Durov also said that he owns some Bitcoin and Toncoin, a token loosely linked with the messaging app.
The new funding follows Telegram raising over $1 billion in debt financing by selling 5-year pre-IPO convertible bonds more than two years ago. TechCrunch has reached out to Telegram for additional information.
More to follow.
https://techcrunch.com/2023/07/18/telegram-raises-210-million-through-bond-sales/
