Telegram Secures $330 Million Through Bond Sales, Eyes Profitability and Public Offering

(Last Updated On: March 19, 2024)

In a significant financial stride, Telegram, the globally recognized messaging platform, has announced the successful acquisition of $330 million in investments via bond sales last week. Pavel Durov, the visionary founder and CEO of Telegram, shared the news on his personal channel, noting the offering was not just fully subscribed but did so with terms highly favorable to the company.

Global Funds Show Confidence in Telegram

Durov expressed his satisfaction with the outcome, stating, “This bond offering was oversubscribed, and we were delighted to have global funds of the highest caliber with impeccable reputations as participants.” He emphasized that the terms of the bonds, especially when adjusted for the Federal Reserve rate, marked a historical moment for Telegram, showcasing the most favorable conditions the company has ever encountered.

While specifics about the investing institutions remain undisclosed, Durov hinted at the participation of top-tier global financial entities, underlining their recognition of Telegram’s growth potential.

A Path to Profitability and Independence

In a recent discussion with the Financial Times, Durov outlined Telegram’s ambitions to achieve profitability by the next year. He revealed that the platform is contemplating an initial public offering (IPO) as a strategic move to both ensure the company’s independence and democratize access to its value. “The main reason why we started to monetize is because we wanted to remain independent,” Durov mentioned, acknowledging the inherent value in pursuing an IPO.

Financial Details and Future Prospects

Sources in the know have disclosed to TechCrunch that the bonds come with a current yield of 7.7%, with maturity options set for either 2026 or the event of Telegram going public, depending on which occurs first. Remarkably, these bonds were issued at $91, showing a significant increase from the previous issue price of $78.

With a robust user base exceeding 900 million individuals, Telegram continues to innovate its revenue generation methods, branching into advertisements, blockchain-based username sales, and premium subscriptions. Additionally, the Dubai-headquartered company has recently introduced a conversion option for personal users to switch to business accounts through a subscription model.

As Telegram marches towards profitability with an eye on the public market, its strategic financial maneuvers, coupled with a burgeoning user community, position the messaging giant for an ambitious and independent future.

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