Telegram’s user base has grown significantly ever since its much more popular competitor (Facebook-owned) WhatsApp ran into trouble due to its Privacy Policy update. Naturally, as Telegram grew, it has started attracting the attention of investors. Now, the UAE headquartered firm has secured a massive investment from Abu Dhabi State Fund Mubadala Investment Co. and Abu Dhabi Catalyst Partners.
The total amount of the investment is $150 million. Half of this was invested by Mubadala in five – year pre – Initial Public Offering convertible bonds, while Abu Dhabi Catalyst Partners invested the other half. Owing to this investment, Telegram will now also be opening an office in Abu Dhabi.
While Mubadala Investment Co. is a sovereign wealth fund, Abu Dhabi Catalyst Partners is a joint venture with Mubadala itself and Falcon Edge Capital- a U.S investment company found in 2012. All these investment firms are avid investors in the technology world, and the fact that they are showing faith in Telegram goes to show the potential of the messaging platform.
Here is what Mubadala executive Faris Sohail Faris al-Mazrui had to say about the Telegram investment, “Telegram’s user base has reached a critical mass that places it amongst global tech giants. Telegram is well-positioned for an inflection point that will transform it into a leading global technology company.”
Telegram was started in 2013 by the Durov brothers, Nikolai and Pavel. While Telegram and Signal are two of the few applications that provide stiff competition to the software giant Facebook, it is starting to face fund issues. Due to its growing popularity, Telegram’s expenses for equipment and bandwidth are also growing; so, such investments are a welcome relief.
Pavel Durov, one of the owners of Telegram, has written in his public channel on Telegram, “A project of our size needs at least a few hundred million dollars per year to keep going. While doing that, we will remain independent and stay true to our values, redefining how a tech company should operate.”
