Telegram secures $210 Million in recent bond sales
Telegram, a globally-acclaimed messaging app serving over 800 million users monthly, has successfully raised $210 million through a bond sale. The bond issuance is the company’s latest strategy in the face of the challenging global economy that has affected public markets.
Bond Sales and Investment
Telegram’s successful bond sales, worth $270 million, have attracted investment from several prominent stakeholders, including Pavel Durov, the company’s founder and CEO. Moreover, potential investors have turned their attention to the app boosting its prospects among competitors like Twitter and Snap.
The capital raised through the issuance of the bonds was significant for a platform still striving for profitability. “Given the noticeable rise in interest rates since 2021, these bonds have a different issue price,” stated John Hyman, Telegram’s Chief Investment Adviser.
An array of “well-respected funds,” known for their bond specialization, backed the bonds, further elevating Telegram’s standing in the investment community. This capital infusion aims to inch Telegram closer to its break-even point. In Durov’s opinion, Telegram is “closer to profitability in absolute numbers.”
Telegram’s rapid growth, with 300 million new users in 30 months and a 2.5 million daily signup rate, has increased its appeal to investors. As the Dubai-based company works to improve its financial position and self-sufficiency, it has activated its monetization engine, including the launch of a subscription service.
Despite the desire to go public, Telegram has been reliant on private investors due to weakening global market conditions. Previously, Telegram raised over $1 billion through 5-year pre-IPO convertible bond sales. However, the challenging global market conditions made the company continue to depend on private investors for operational funding.
The new bond sales, raising an additional $210 million, mark a significant step in the company’s journey toward profitability. As Telegram continues to grow and innovate, it stands out as a notable player in the tech landscape.