Even as Telegram faces legal scrutiny and grapples with billions in debt, it is set to be profitable for the first time as it tries cryptocurrencies, subscriptions and ads.The New York Times reports that despite facing legal challenges and struggling with billions in debt, Telegram is expected to turn a profit for the first time as it explores new revenue streams such as cryptocurrencies, subscriptions, and advertising.
According to sources familiar with the matter, Telegram has been in talks with investors who have lent the company over $2 billion, assuring them that it remains a viable investment despite the arrest of its founder, Pavel Durov, in August on charges related to illicit activities on the platform.
In these discussions, Telegram has emphasized its efforts to address its legal troubles by increasing content moderation and paying off a significant portion of its debt. The company has also expanded its revenue streams, including introducing advertising, subscriptions, and video services.
Unlike other social media companies, Telegram has taken a unique approach to its business model, relying on Mr. Durov’s personal wealth and taking on debt rather than seeking funding from venture capitalists or selling user data. However, the company has faced criticism for hosting illegal content, such as child exploitation and drug trafficking.
Despite these challenges, Telegram is on track to generate over $1 billion in revenue this year, up from $350 million in 2020, and is expected to be profitable for the first time. The company also has a significant cash reserve of around $500 million, not including its cryptocurrency assets.
Telegram’s financial stability is crucial as it looks to overcome its legal and regulatory hurdles, maintain its independence, and potentially go public in the future. The company has also ramped up its content moderation efforts, with over 750 contractors now responsible for monitoring and removing illegal content from the platform.
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