Snapchat is expected to receiving funding from Venture capital firm Kleiner Perkins Caufield & Byer at a valuation of USD 10 billion, reports The Verge. In May, Kleiner Perkins had committed to invest up to USD 20 million in Snapchat at this high valuation. The other investor is also taking part in this funding but name is still undisclosed by the company.
Post this deal, as per a Reuters report, Snapchat is expected to join a select club of tech startups, including car-ride service Uber and rooms-to-let startup AirBnB. Last year, It had rejected a acquisition offer from Facebook for USD 3 billion.
Facebook had also released a new iOS and Android app named Slingshot to rival Snapchat app, allowing users to sign up for the service with their mobile phone number and connect with friends in their phone’s contact list without requiring Facebook accounts.
It is also planning to launch Snapchat Discovery in this November that is expected to display articles, videos, and ads to app’s users. According to a recent report by comScore, Snapchat is now the third most popular app among millennials (18-34 year olds) at 32.9 percent penetration, lead by Facebook (75.6 percent) and Instagram (43.1 percent) among smartphone users.
Apart from this, Snapchat has raised five round of investment and secured a total funding of USD 163 million, till date. It is backed by seven investors and launched in May, 2011 by Co-Founders Bobby Murphy and Evan Spiegel. The app allows to take photos, record videos, add text and drawings, and share a moment with friends.
The others apps are also included in this space such as LINE, Kakao Talk, Whatsapp, WeChat, Kik, Tango, Viber and others, which also attracts hundreds of millions of users. Snapchat having four main competitors like 4INFO, Tawkers, Tackk and ChatApp.
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