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Snapchat Is Reported To Be Indulged In Raising Funds worth $10 Billion

Snapchat survived in the market of social networking apps with its strong and ever-growing

user base which comprises of mainly the teenagers. The company survived successfully in the

market even in the zero-revenue status. The escalating number of users of the app encouraged the

investors to court Snapchat. The investors looked through the company and the potential it has in

the form of the growing user base. Lately, Snapchat indulged in the plans of generating revenue

from the apps and welcomed the investors to invest in the company. The company lately had

association with some of the major investors to upgrade the app.

Snapchat welcomed the investors

The Los Angeles based company Snapchat which created a buzz in the world of social

networking apps had been in talk with Alibaba Group Holding Ltd. (BABA). Sources even

claimed that the company of ephemeral photo-messaging app is all set to authorize the issue of

new shares. Lately, Snap chat has welcomed the investors to invest in their company instead

of sticking to the non-monetizing, no-revenue policy. The company has held discussions with

Alibaba for financing which can value the company $10 billion. As the meeting between the two

companies ended, new speculations arose about the meeting and its results.

Fundraising attempts of Snapchat

The app Snapchat is encouraging to process of raising finance. Snapchat authorized shares

amounting to 17.4 million in new preferred stock. The fundraising of Snapchat saw an increase

of almost 1.2 million shares in a month earlier. The shares of the company are valued at the

fraction of a cent as reported by the filing in Delware in the month of August. The amount of

the new shares of Snapchat is equal to almost 3 percent of company as reported by the analysts

that provided the filing. The low prices of the shares are probably an indication that Snapchat is

perhaps tied to or involved in another investment which could be an IPO or an acquisition. The

filed documents indicate that Snapchat is planning to change the structure of the company.

Valuation of Snapchat

The popularity of Snapchat is expected to grow more with the users sending about 700 million

ephemeral snaps per day and above 500 million of stories are viewed every day. It is predictable

that the rising statistics will attract investors all over the world to invest in the app. the more the

investment; the more are the chances for upgrade of the features and the introduction of new

features. So, it is natural for the Chinese ecommerce company, Alibaba to show the desire to

invest in such a company. The valuation of the app Snapchat which is based in Los Angeles

attained escalating heights in a very short period of time. The valuation of the company n the last

year was $3 billion; the figure seemed to have dwarfed in the front of the valuation figure of this


To conclude

The exact result of the meeting between Snap chat and Alibaba is not yet revealed. Critics and

followers are eagerly waiting for Snapchat to get into a deal with the Chinese ecommerce giant,


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