Snapchat Just Raised Another $486 Million

Evan Spiegel Portrait Illustration Snapchat ghostsMike Nudelman/Business InsiderSnapchat CEO Evan Spiegel

Snapchat raised some major funds on New Year’s Eve.

The mobile messenger app has raised another $US486 million, according to an SEC filing made Wednesday. The filing says 23 investors joined the offering, but it’s unclear who’s leading it.

The funding brings the total raised by Snapchat to more than $US649 million. It comes just four months after raising $US20 million at a $US10 billion valuation in August. Its previous investments came from VCs including Benchmark, Kleiner Perkins, and General Catalyst Partners. 

Although it’s unconfirmed, Techcrunch reports that Snapchat could now be worth as much as $US20 billion. If true, that would make Snapchat the third most valuable startup behind Xiaomi and Uber.

Founded in 2011 by a group of Stanford students, Snapchat is an app that lets users send self-destructing messages. It currently has over 100 million users, mostly between the age of 13 and 25, and is used by nearly 9% of US mobile users

Despite its popularity, however, Snapchat has almost no revenue. It has just started rolling out new features that could lead to more money-making business.

Earlier this month, a bunch of emails between Snapchat CEO Evan Spiegel and Sony CEO Michael Lynton were exposed through the Sony hack. The emails revealed that Snapchat had paid $US30 million to acquire a video startup AddLive, while blowing a chance to raise money from the Chinese messenger company Tencent. The emails also suggested that the acquisition offer Snapchat had received from Facebook was more than the reported $US3 billion amount.

Snapchat confirmed the filing but declined to make any further comment.

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