Telegram, a popular messaging app headquartered in Dubai has successfully secured $210 million in bond sales this week from various investors, including its founder and CEO Pavel Durov, who also made a significant investment. The move comes as the company adapts to a sluggish economy that has diminished the public markets’ interest in listings.
To secure the capital, Telegram issued bonds worth a total of $270 million. Due to the significant increase in global interest rates since 2021, the bonds were priced differently. John Hyman, Telegram’s Chief Investment Adviser, explained that the shift in interest rates had an impact on the bond prices, as he confirmed in an interview with TechCrunch.
Although Telegram is not yet profitable, “Durov believes that the new financing will help the company achieve profitability and move closer to its ‘break-even’ point. He asserts that Telegram is closer to profitability in absolute terms than its competitors, such as Twitter and Snap.
He mentioned that the bonds were purchased by a group of “well-known funds with stellar reputations,” without disclosing their identities, but described them as reputable and sophisticated global funds specializing in bonds.
Durov personally invested in Telegram bonds, purchasing approximately a quarter of the newly issued bonds and dedicating “tens of millions” to the growth of the app. Despite facing competition from other social media platforms, Telegram has experienced rapid growth, adding over 300 million users in the past two and a half years and attracting 2.5 million new signups daily.
For Telegram, the bigger challenge lies in improving its financial situation and achieving self-sufficiency.
Telegram has sought to go public for several years, it has faced obstacles, such as the SEC blocking its token sale. The prevailing global market conditions, characterized by a weakening economy, have compelled the company to continue relying on private investors to fund its operations.
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