Pavel Durov Plans to Raise a $1 Billion Loan for Telegram

Pavel Durov held negotiations with banks and investors to raise a loan of about a billion dollars for Telegram. It was also reported that additional funding may exceed $1 billion, but the company's plans may still change.

Last week, more than 25 million new users worldwide joined Telegram in 72 hours due to changes in WhatApp privacy policy and Twitter and Facebook's tough stance against Donald Trump and his supporters.

Telegram has recently exceeded 500 million monthly active users, and the number of users only continues to grow. Such growth led to a significant increase in the cost of maintaining the messenger's infrastructure, which still does not earn on its own but is financed with the personal funds of Pavel Durov.

Therefore, Telegram is now looking for additional funding, especially since in April, the company will have to pay off the investors of the TON blockchain project, who agreed to convert their investments into a loan and receive 110% of the invested amount in the spring of 2021. It is still unknown how much Telegram owes after the closure of TON, but now the company had to accelerate its search for funds due to the growing costs of maintaining the Telegram messenger.

A Telegram spokesman noted that the company is constantly receiving funding offers. He added that Telegram is considering various options that suit the privacy-focused messenger.

Raising financing in the form of debt will allow Pavel Durov to retain full control over Telegram, settle accounts with TON investors, and strengthen the messenger's infrastructure before the start of monetization, announced at the end of 2020.