Investments, Mobile, News

Snapchat to raise USD 200 Mn at a valuation of USD 3.5 Bn

snapchatMessaging app Snapchat, which recently grabbed USD 80 Mn in a funding round, is now gearing up for raising yet another round of funding at a valuation between USD 3 to USD 4 Bn.

California based Snapchat has already raised two rounds of funding this year and the previous round which it had raised a few months back in June from General Catalyst, Benchmark Capital, Lightspeed Venture Partners and SV Angel valued it at around USD 800 Mn. Prior to that, it has raised USD 13.5 Mn from Benchmark and was valued at USD 70 Mn at that point of time.

According to a report by Gigaom, Snapchat might be raising USD 200 Mn from hedge funds, including Naspers.

Though Snapchat has yet to make any official statement for the same.

As per AllthingsD Snapchat may value at USD 3.5 Mn after this funding round, which comes like a quite surprise as the company is yet to introduce any monetization model, however Evan Spiegel, Founder and CEO, Snapchat had earlier said to add monetization model prior going to a next round of funding. For which, the company was seen experimenting with a click to buy button and earlier this month it also began rolling out new features including Stories, which allows users to share several moments, with groups of friends that last for 24 hours.

Snapchat was launched in 2011 and is known for its self destructing feature, as of September it processed around 350 Mn messages each day. The company was even approached by Mark Zuckerberg, CEO, Facebook for acquiring it for over USD 1 Bn, however Spiegel wasn’t interested in selling it.

The news of Snapchat raising another round comes in light when yet another messaging app LINE is said to be considering going for an IPO.

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