Teenagers sending selfies to one another, it turns out, could be worth as much as $20 billion.
Image messaging app Snapchat has raised $1.8 billion in its latest Series F round, TechCrunch reported. Of that figure, the company raised $1.158 billion alone since January, according to SEC filings. Investors in this round of funding include General Atlantic, Sequoia Capital, T. Rowe Price and Fidelity, among others.
The Los Angeles-based tech company brought in about $59 million in revenue in 2015. But it’s recently stepped up its funding efforts and updated its business model. TechCrunch estimated that Some sources estimate that the tech company could be worth $20 billion after the latest investments. Last year, the company, then valued at $16 billion, raised $650 million, with Fidelity—also an investor in this round—contributing $175 million.
The company, which reportedly raises money on a rolling basis, plans to put the new funding to good use. It’s expected to pull in between $250 and $300 million in revenue for 2016 — more than 4 times what it made in 2015 — and between $500 million or as much as $1 billion in 2017. Those projections might be overly optimistic: They were generated before the company ramped up revenue generation through advertising and Discovers, which comes at a premium for brands.
Still, Snapchat has seen tremendous user growth recently. It had 110 million daily active users as of December 2015, representing nearly 50% growth from 74 million the previous year. Additionally, video views on the app have grown by more than 350% in the last year, now up to more than 10 billion in a day. The app also estimates that more than two-thirds of people who use Snapchat create content on a daily basis.
In order to keep users interested in the product, the company has also unveiled new features like swapping faces with one another, attaching an emoji to a moving object in a video, and upgrading its Chat experience. As it seeks to expand beyond younger users, Snapchat is also developing content for the platform in partnership with other producers like Stories, as well as its own takes on ads.