Telegram secured $330 million last week through a well-received bond offering. Making the announcement, CEO Pavel Durov, highlighted the strong investor demand and the favourable terms secured for the company.
“This bond offering was oversubscribed, and we were delighted to have global funds of the highest calibre with impeccable reputations as participants. The terms of the bonds (when adjusted for the Federal Reserve rate) were the most favourable for Telegram in the history of our company,” Durov wrote on his Telegram channel.
Durov kept the identities of the participating institutions confidential. However, he did emphasize their stature as prominent global players.
Surpassing 900 million monthly active users as of March 2024, Telegram boasts a staggering 60% growth since April 2022. This positions it as the fourth most popular messaging app globally, following WhatsApp, WeChat, and Facebook Messenger.
Having started the company with his brother, Durov is now the sole owner. He told the Financial Times on March 11: “We are hoping to become profitable next year, if not this year.”
He signalled a shift towards monetization and a potential IPO in a recent message. He highlighted the company’s initial monetization efforts and expressed his belief in an IPO as a way to make Telegram’s value accessible to a wider audience. This comes even though Telegram has received lucrative acquisition offers exceeding $30 billion
Telegram’s recent bond offering had a competitive yield of 7.7%. These bonds mature in 2026, or earlier if Telegram goes public. Interestingly, the issue price was $91 per bond, which is higher than the $78 price of the previous offering.
The app has already raised $2 billion through bond issues since 2021. Bondholders would receive a 10-20% discount on the Telegram IPO if it is floated before March 2026. Telegram would consider offering “loyal” users shares during the IPO as well. This will be emulating Reddit.
