Telegram has reported a remarkable financial turnaround, posting a profit of $540 million in 2024 after a $173 million loss the previous year. This shift comes amid soaring revenues that jumped from $343 million in 2023 to $1.4 billion in 2024. The growth is largely credited to a surge in paying users, advertising income, premium subscriptions, and increased traction from its Ton blockchain ecosystem.
To capitalise on this momentum, Telegram is preparing to raise $1.5 billion through a bond sale. Investors will be offered the option to convert their bonds into shares at a 20% discount if the company eventually goes public, a structure similar to Telegram’s previous fundraising strategies. The bond sale is expected to conclude within a week, potentially setting the stage for an IPO in the near future.
Despite these financial gains, Telegram is facing challenges that could complicate its ambitions. Founder Pavel Durov was detained by French authorities in August 2024 over allegations that Telegram failed to prevent the spread of criminal content on its platform. Durov has dismissed the accusations, suggesting they are politically motivated. While he has since been released, the case is ongoing and could result in a prison sentence. This legal uncertainty casts a shadow over the company’s plans to go public and has raised concerns among potential investors.
Telegram’s rapid growth has been driven by its ability to scale operations efficiently. The company runs with a lean internal team of about 60 people, relying heavily on contractors for moderation and other services. It now boasts over 1 billion monthly active users, making it one of the most popular messaging platforms globally.
In a bid to further diversify its offerings, Telegram recently announced a partnership with Elon Musk’s xAI to integrate the Grok chatbot. This collaboration is expected to enhance user experience and strengthen the company’s tech capabilities. Telegram has set an ambitious target for 2025, aiming to reach $2 billion in revenue and $720 million in profit.
Generally, Telegram’s financial turnaround is impressive, underpinned by strong user growth and diversified revenue streams. However, the legal proceedings against its founder and ongoing scrutiny over content moderation pose significant risks.
