Cloud-based instant messaging platform Telegram has hit a milestone after it crossed 900 million users and is nearing profitability.
According to the founder Pavel Durov, he stated that the company has experienced substantial growth, generating hundreds of millions of dollars, as he is considering an IPO listing.
Durov expressed optimism about Telegram’s financial future, stating that he hopes the company would be profitable next, if not this year.
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Ever since the introduction of advertising and premium subscription services on the platform two years ago, it has so far generated hundreds of millions of dollars. Also, the platform’s monthly active users have surged from 500 million at the start of 2021 to 900 million currently, highlighting its immense global popularity.
Telegram’s yearly expenses stood at less than 70 cents for each monthly user. As part of its effort to generate revenue, the platform has been testing advertising in certain regions, mandating a minimum spend of between EUR1 million and EUR10 million per marketer or agency. This year, it plans to expand the offering globally and to smaller advertisers using automated systems.
This month, Telegram announced plans to introduce revenue sharing with the creators that run its channels, promising them a 50% cut of marketing dollars. In addition, it is also rolling out business accounts and a social discovery feature which will help users to meet or date people near them.
According to Telegram founder Durov, he disclosed that the company has been offered $30 billion-plus valuations from potential investors including global late-stage tech funds, but has ruled out selling the platform while it explores a future initial public offering.
He said,
“The main reason why we started to monetize is because we wanted to remain independent. Generally speaking, we see value in an IPO, as a means to democratize access to Telegram’s value”.
In the event of an IPO, Durov said Telegram would consider selling an allocation of stock to loyal users, following Reddit which recently announced that it would allocate a portion of its shares to retail investors ahead of a New York listing as early as March.
There are speculations that once Telegram has reached profitability and market conditions are profitable, it would likely aim for a US listing.
Notably, in an effort to diversify revenue streams, Telegram plans to introduce advertising globally and revenue sharing with channel creators. New features such as business accounts and a social discovery feature aim to enhance user engagement and monetization opportunities.
With Meta-owned messaging platform WhatsApp, having 1.8 billion monthly active users, and encrypted app Signal reaching 30 million users, Telegram persists in establishing its presence in the fiercely competitive messaging arena as it continues to roll out new features.
It is interesting to note that since its inception in 2013, Telegram’s user base has grown at a pace of more than 40% every year. The platform added over 300 million users in the past two and a half years and continues to get 2.5 million new signups every day. At this rate, Telegram is expected to reach a user count of 1 billion in 2024.