Snapchat Inc., the Los Angeles-based start-up featuring disappearing messages, raised $1.8 billion in its latest Series F funding round, according to a Securities and Exchange Commission (SEC) filing on Wednesday.
In its most recent round of fundingit raised $1.8 billion, whilst the video-sharing social network made around $1.158 billion in the last five months, beginning January, according to a leaked slide deck reported by TechCrunch.
The company’s investors in this round, according to sources who wanted to remain anonymous, are General Atlantic, Sequoia Capital, T. Rowe Price, Lone Pine, Glade Brook Capital, IVP, Coatue Management, and Fidelity, among others.
In addition, the Chinese e-commerce giant Alibaba agreed to invest $200 million recently which valued the company at $15 billion.
The SEC filing did not reveal Snapchat’s current valuation. However, the unnamed sources said that some investments were being taken at about $17.5 billion pre-money valuation. Adding in the $1.8 billion, it becomes closer to the targeted post-money valuation of around $20 billion. Some sources, meanwhile, said that the private start-up company is valued at around $18 billion in this round.
Meanwhile, Snapchat only had about $60 million in revenues last year according to the leaked slide deck. The start-up is projecting revenues ranging from $250 million up to $350 million for this year and as much as $1 billion in revenues in 2017.
Snapchat was founded in June 2011 allowing users to send multimedia messages that would disappear in a matter of one to 10 seconds. The mobile messaging app, according to The New York Times, proved to be popular among people who are 13 to 34 years of age, a group that is chased by advertisers and brands who want to become a part of consumers’ daily habits.
In 2015, the Los Angeles-based company launched Discover, a product that allows users to read stories and watch videos from Vice, ESPN, BuzzFeed, Comedy Central, and other media companies. This feature made a way for the start-up to make more profits from its more than 100 million daily active users.
Snapchat said in the past that its video views grew by up to 350% in the last year to more than 10 billion video views per day with two-thirds as many additional people creating content every single day.