Secretive messaging app Telegram claims that it is inching closer towards breaking even and going public. Dangling the possibility of an initial public offering has helped it secure more favourable borrowing terms. In keeping with the company’s anti-surveillance back-story, however, financial details are sparse.
Does co-founder Pavel Durov really want to run a public company? He has previously used his private wealth to fund Telegram and wants to maintain control. Opting for debt over equity fundraising means he can avoid diluting ownership, although it adds interest to the company’s overall expenses. Previous investor demand may not have been high. Last year he purchased a quarter of the bonds issued himself.
In mid-March, Telegram announced that it had raised a further $330mn in a bond sale, taking total debt financing to $2.3bn since 2021. Once again, the potential IPO was used as a sweetener. Bonds can be converted to equity at a discount to the IPO price if there is a listing by March 2026. The company talks up a possible $30bn valuation but offers no details to back this up.