02 January, 2015

Messaging app Snapchat raises $486 million

Messaging service Snapchat had plenty of reasons to celebrate on New Year's Eve.

The startup disclosed it raised $486 million in a filing to the Securities and Exchange Commission. According to the filing, the funding round involved 23 investors.

Bloomberg reports the new round of funding values Snapchat at $10 billion.

The mobile app allows users to send ephemeral messages and videos to friends. In October, multiple reports surfaced that Yahoo was seeking to invest in Snapchat following the sale of Alibaba Group stock.

Snapchat is the latest tech darling to scoop up enough funding to draw eye-popping valuations. Earlier this month, Uber closed a funding round worth $1.2 billion, while Chinese smartphone maker Xiaomi revealed this week it raised $1.1 billion to fuel a $45 billion valuation.

Messaging apps is the new Social Media sure you would agree