Popular social chat app Discord is reportedly in talks with investment bankers to prepare for a potential initial public offering (IPO) later this year. The company, last valued at $15 billion by private investors, is looking to capitalize on the strong valuations for privately held companies amid market volatility caused by economic uncertainty.
Despite the challenging financial markets, other companies like CoreWeave are also gearing up for IPOs. CoreWeave, a cloud computing provider for artificial intelligence, reported revenue of $1.9 billion last year.
Discord, founded by tech workers Jason Citron and Stanislav Vishnevskiy, started as a platform for gamers to communicate while playing. With more than 200 million monthly users, the app is popular for its text, voice, and video chat features, especially among gamers.
The company generates revenue through a freemium model, offering subscription-based upgrades like custom emojis and better chat quality. Discord has also expanded its reach to influencers, musicians, and other figures who create their own chat rooms for fans to gather.
Discord’s recent move includes launching an online shop in 2023, allowing users to enhance their profiles with custom graphics for digital avatars. Despite holding acquisition talks with Microsoft in 2021, no deal materialized, leaving Discord to focus on its mission of delivering the best user experience and building a sustainable business.
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