By
Bhushan Akolkar
April 25th, 2024
Telegram has achieved a significant milestone by surpassing 900 million monthly active users. Speculation about the launch of an IPO has arisen, fueled by Telegram’s meteoric rise and financial progress.
The popular encrypted messaging application Telegram has reached a significant milestone by surpassing 900 million monthly active users, as revealed by its founder Pavel Durov in an interview with the Financial Times.
According to him, Telegram’s remarkable user base growth, compared to the 500 million users it had at the beginning of 2021, has positioned Telegram as one of the most widely used social media platforms globally.
The Dubai-based company is also on the brink of profitability, generating “hundreds of millions of dollars” in revenue through advertising and premium subscriptions introduced two years ago. Durov expressed optimism about the company’s new juicy earnings, stating:
“We are hoping to become profitable next year, if not this year.”
Is Telegram Preparing to Launch an IPO?
Telegram’s meteoric rise and its financial progress have sparked speculation about the launch of a possible initial public offering (IPO). While Durov acknowledged receiving offers from global tech investors valuing the company at over $30 billion, he emphasized that the desire to maintain independence was the main motivation for monetizing the service.
“The main reason why we started to monetize is because we wanted to remain independent,” declared Durov to the Financial Times.
In addition to its monetization efforts, Telegram is introducing new features, such as revenue sharing for content creators, business accounts, and a “social discovery” tool to facilitate interactions and meetings between users. Not bad for those looking to leverage a secure social network to find their dream date.
Similarly, the company is also exploring the implementation of AI-driven chatbots and leveraging AI to enhance moderation processes.
However, as Durov mentioned in the interview, the launch of an IPO “remains a possibility” if the company wanted to raise funds to improve its services and tools.
Indeed, Telegram’s achievement of reaching 900 million monthly active users is remarkable, especially considering that it is only half the size of its main competitor, WhatsApp, which is owned by Meta Platforms (NASDAQ: META). With a workforce of over 67,300 employees and revenues exceeding $32 billion, Meta Platforms represents a formidable competitor for Telegram. Given the financial resources and might of Meta Platforms, it is not surprising that Telegram may consider launching an Initial Public Offering (IPO) to continue its battle against Mark Zuckerberg’s colossal conglomerate.
An IPO could provide Telegram with the necessary funds to expand its operations, improve its services, and compete more effectively with its formidable rival. Therefore, perhaps the appropriate question is not whether Telegram will launch an IPO, but rather when it will do so.