Snapchat plans IPO, looks to invest in shopping app

Snapchat mulls IPO, looks to invest in shopping app

28 MAY 2015

Snapchat CEO Evan Speigel has said an initial public offering is very much on the cards, although when the move will happen is still unclear, Reuters reported.

“We have to IPO…It’s just another dot on the list of things to do,” he said at a conference in California.

In 2013, Snapchat turned down a $3 billion offer from Facebook and in 2014 managed to raise funds from more than 20 investors at a $10 billion valuation.

This year, Snapchat has been flying high: it received $200 million funding from Alibaba; discussed a $500 million funding round with fund managers which would value the company somewhere between $16 billion and $19 billion; and has been talking to Saudi Arabia’s Prince Alwaleed bin Talal, who owns 95 per cent of investment holding company Kingdom Holding.

In related news, Snapchat wants to invest in a shopping app called Spring, Re/code reported, although nothing official has been said.

This could be a good fit with Snapcash, a feature which allows its users to send and receive cash.

Spring was launched in August last year and raised $25 million in April. It is now looking for a further $5.7 million. The app features products of partner clothing brands including Marc Jacobs and Levi’s.

Other social media apps like Facebook, Twitter and Pinterest have also been looking into e-commerce and are experimenting with ‘buy’ buttons.


Saleha Riaz

Saleha joined Mobile World Live in October 2014 as a reporter and works across all e-newsletters - creating content, writing blogs and reports as well as conducting feature interviews...More

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