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Snapchat CEO Evan Spiegal. AP Photo/Jae C. Hong
On the up

Snapchat is on track to becoming a $10 billion company

Turning down Facebook’s offer of $3 billion doesn’t sound so crazy now, does it?

SNAPCHAT IS NOW close to being valued at roughly $10 billion after another group of investors have agreed to invest in the company.

The app, which has been talking to several potential investors in recent months, has seen venture-capital fund Kleiner Perkins deciding to invest $20 million in preferred stock, giving it a valuation of $10 billion, according to the New York Times.

At least one more investor is expected to take part in this round of funding, which is reported to not have closed yet.

More than 100 million people now use Snapchat every month, with roughly two-thirds of those logging on to the app daily. Roughly half of the app’s users are aged between 13 to 17 and more than 500 million ‘snaps’ are sent among its users every day.

Despite the significant valuation, the app hasn’t generated any revenue yet. To remedy this, the company has been talking to ad companies and media outlets about a new service called Snapchat Discovery.

Expected to launch in November, the service will feature content and ads from both advertisers and media companies.

The company was rumoured to be reaching a $10 billion valuation last month when it was in talks with Chinese internet giant, Alibaba Holding, but it decided against investing in the app.

Read: Instagram’s new app makes timelapses ridiculously easy >

Read: Own an iPhone 5? Your battery may be defective and need to be replaced >

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