Messaging app Snapchat has filed confidentially for an initial public offering (“IPO”), sources familiar with the situation told Reuters on Tuesday. The Venice, California-based company - which swiftly won over the fashion industry since its launch in 2011 (even high fashion houses like Burberry, Dior, Fendi, Gucci, Louis Vuitton, Marc Jacobs, Mulberry and Valentino maintain accounts) - is in the process of planning one of the biggest technology IPOs in recent years, that could value the company at $25 billion or more, with trading expected to come as early as late March.
Snapchat's valuation has grown in the last few years as the company added advertising and sponsored contents to its messaging service. The company has told investors to expect $1 billion in advertising revenue in 2017, according to sources familiar with the matter. Particularly noteworthy, an IPO valued at $25 billion would be significantly higher than Snapchat's most recent valuation of $17.81 billion, based on a $1.81 billion financing round in May. It would also represent the largest IPO by a technology company since Chinese e-commerce giant Alibaba Group Holding went public in 2014.