The number of Telegram users exceeds 900 million. The founder is considering an IPO and is close to profitability.

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Telegram, which has 900 million users, is close to profitability as the company moves closer to a potential blockbuster stock market listing, according to its owner.

Dubai-based Telegram has grown to become one of the world's most popular social media apps after launching an advertising and paid subscription service two years ago, Pavel Durov told the Financial Times. Generating “hundreds of millions of dollars” in revenue.

“We hope to be profitable next year, if not this year,” the Russian-born founder said in his first public interview since 2017, adding that the platform had 900 million monthly active users, more than 500 million in early 2021.

Durov, who fully owns Telegram, said potential investors including a “global late-stage technology fund” have “offered a valuation of more than $30 billion” to the company, but he ruled out a future IPO as it explores the possibility of selling the platform.

“The main reason we started monetizing was we wanted to stay independent,” he said. “Generally speaking, we see value [an IPO] As a means to democratize the value of Telegram. “

Once largely home to the freewheeling cryptocurrency community, the company has only about 50 full-time employees but has surged in popularity over the past few years, becoming a critical communications tool for governments and officials around the world, as well as a lifeline for citizens in conflict zones.

Researchers warn that the lightly regulated platform remains a breeding ground for criminal activity as well as extremist or terrorist content and misinformation. Critics have suggested the Kremlin may have ties to or influence Telegram, a claim Durov dismissed as “inaccurate.”

In 2007, Durov co-founded VKontakte, Russia's most popular social media network, in his hometown of St. Petersburg and is known as the “Russian Mark Zuckerberg.”

A free speech advocate, he founded Telegram in 2013 with his brother. According to Durov, he fled Russia a year later after refusing to share the data of certain Ukrainian VK users with Russian security agencies. Durov said he was coerced into selling his VK shares to pro-Kremlin oligarchs for $300 million.

Telegram may consider a U.S. listing once the company becomes profitable and market conditions are favorable, two people familiar with the matter said. Durov declined to comment on the timeline or possible locations, but said Telegram had “explored several options.”

Telegram has raised about $2 billion in debt financing, including a $1 billion bond issued in 2021, as well as $750 million and $270 million in bonds issued last year.

If a listing occurs before the end of March 2026, these bondholders will be able to convert senior unsecured debt into equity at a 10% to 20% discount to Telegram's IPO price, creating an incentive for the company to list before that date.

Durov said in the IPO that Telegram would consider selling some shares to loyal users, following Reddit's recent announcement that it would allocate some shares to retail investors ahead of its New York listing as early as March.

Durov said he has been interested in doing smaller equity rounds. “If we want to raise money, for example to provide fuel for our cars, that’s still a possibility. [artificial intelligence] related ambitions,” he said, adding that the company was exploring the introduction of AI-powered chatbots.

Meta's messaging rival WhatsApp has 1.8 billion monthly active users, while encrypted messaging app Signal had 30 million users as of February 2024, according to Sensor Tower analysis, although this data only covers usage of mobile applications.

The annual fee for a monthly user is less than 70 cents, Durov said. Telegram has been testing ads in certain regions as part of its revenue-generating efforts, setting a minimum spend of €1 million to €10 million per marketer or agency. This year, it plans to expand its offerings globally and offer its services to smaller advertisers using automated systems.

The company will enter into revenue sharing this month with creators who run its channels, promising that they will receive a 50% cut of marketing fees. In addition, it is launching business accounts and a “social discovery” feature that will help users meet or date people nearby, Durov said.

Telegram’s bid for advertising dollars runs counter to its reputation as a rebellious platform with a hands-off approach to moderation, which has recently come under scrutiny for allowing some Hamas-related content to remain on the platform.

Durov said Telegram plans to improve its review process this year and “deploy AI-related mechanisms to address potential issues” as multiple global elections unfold.

But “unless they cross a red line, I don't think we should police the way people express themselves,” Durov said. “I believe in the competition of ideas. I believe that any idea should be challenged. . . . Otherwise, we will quickly descend into authoritarianism.”