Chinese e-commerce giant Alibaba is investing Snapchat at $15 billion valuation
Last year, Alibaba was said to in talk with Snapchat before its IPO. However, nothing eventually materialized. Today, in a report from Bloomberg, Alibaba plans to invest $200 million in Snapchat with a $15 billion valuation, and this funding is separate from an ongoing funding effort which amounts to $500 million.
Imran Khan, the Snapchat’s newly hired Chief Strategy Officer, said to be the key to this deal. Mr. Khan was formerly head of Asia investment banking at Credit Swiss and was instrumental to executing Alibaba’s IPO in the U.S.
Until December 2014, Snapchat has raised funding total amount to $649 million. The company’s investor-list includes Yahoo and Alibaba’s Chinese rival Tencent.
In the U.S, 18% of all social media users use Snapchat. With around 200 million monthly active users, Snapchat is recognized as one of the most powerful competitors of Facebook, while the latter tried to buy Snapchat for $3 billion and was rejected last year.
Alibaba’s IPO, surpassed a previous global record set by Agricultural Bank of China Ltd. in 2010 when the lender raised $22.1 billion, ranks as world’s largest IPO at $25 billion.