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The Markets
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The Markets
by Proactive
Proactive UK has moved.
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Software & services

Telegram targets IPO as users grow and profitability nears

Telegram, the encrypted messaging app, is moving closer to a blockbuster IPO as it becomes one of the world’s most popular social media apps and edges closer to profitability.

Some 900 million users currently message through the app while making “hundreds of millions of dollars” in revenues, according to its boss and founder Pavel Durov.

It comes two years after management decided to implement advertising and premium subscription services into its offering.

“We are hoping to become profitable next year if not this year,” said Durov in his first public interview since 2017.

Durov, who owns all of Telegram, revealed investors have “offered US$30 billion-plus valuations”, but he has put any offers on hold as the company explores a future stock market listing.

“The main reason why we started to monetise is because we wanted to remain independent… Generally speaking, we see value in [an IPO] as a means to democratise access to Telegram’s value,” he explained.

A US listing is believed to be the most likely for the app, according to people close to the matter, although management is waiting for more favourable market conditions and it to achieve profitability before an IPO.

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