Snapchat is doing good business. The hugely popular photo messaging app has secured an investment of over $ 1.8 billion, confirmed by a regulatory filing on Thursday.
The app, which was developed in Los Angeles in 2011, last year had a turnover of 59 million, but that was not enough for the creators. Of the most recent Series F of $1.8 billion, more than $1.158 billion has been raised in the past five months.
The money does not come from the users of the app, but quite a few big companies who saw salvation in investing in Snapchat. It is not clear how much the app is now worth, but the investment will help. Experts estimate that the worth of Snapchat now will be around $20 billion.
According to reports, investors in this round include Sequoia Capital, General Atlantic, T. Rowe Price, Glade Brook Capital, Lone Pine, IVP, Coatue Management and Fidelity, and others.
Snapchat, which is especially popular among teens has more than 100 million daily users. It is giving a tough competition to existing social media rivals such as Twitter and Facebook. Photos and videos that are shared in the app, disappear after a short period. The company is also increasingly focusing on the IM market.