Telegram Secures $210 Million in Bond Sales to Boost Profitability

  • Jul 21, 2023
  • Sofia Martinez
Telegram Secures $210 Million in Bond Sales to Boost Profitability

Popular messaging app Telegram has successfully raised a whopping $210 million through bond sales. The massive financial boost, which included investments from Telegram’s own founder and CEO, Pavel Durov comes as the company navigates a sluggish economy that has significantly reduced public market interest in listings.

The messaging service, utilized by a staggering 800 million users on a monthly basis, has raised capital through the issuance of bonds which are valued at $270 million. The bonds, however, have a different issue price due to a significant rise in interest rates since 2021. This disclosure was made by John Hyman, Telegram’s Chief Investment Adviser, in a conversation with TechCrunch.

Telegram is yet to attain profitability, and according to Durov, the newly raised funds will propel the company closer to the break-even point. Despite not being profitable, Durov made a bold claim that his app was closer to profitability in absolute numbers compared to competitors such as Twitter and Snap.

Notably, the bonds were purchased by a variety of well-known funds known for their stellar reputations. However, Durov refrained from disclosing their identities. Hyman, however, revealed to TechCrunch that the backers are highly sophisticated global funds that specialize in bonds.

With a user base of over 800 million users and a recent successful bond sale, Telegram is steadily positioning itself as a formidable player in the messaging app market. The newly raised capital will undoubtedly go a long way in aiding the company's quest for profitability. As the company continues to compete with tech giants like Twitter and Snap, it will be interesting to watch how these funds will be utilized to boost Telegram’s growth and profitability.

What are your thoughts on Telegram's recent bond sales? Do you think the company will achieve profitability soon? Please leave a comment below.

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