Mubadala Investment Company and Abu Dhabi Catalyst Partners invest $150 million in Telegram, a social media platform, in 5-year pre-IPO convertible bonds.
Both of these UAE companies will invest $75 million in Telegram in exactly the same amount.
The social media app is one of the top ten most downloaded applications in the world, with over 500 million monthly active users.
After WhatsApp updated its privacy policy, Telegram gained a lot of traction.
Many users switched to other messaging apps, with Telegram being one of the most popular.
“We are honored by the $150 million investment into Telegram from Mubadala and Abu Dubai Catalyst Partners,” said Pavel Durov, Telegram’s founder and CEO.
We are excited to further expand this strategic partnership in order to continue our expansion in the MENA region and globally.”
The strategic relationship between the two UAE investment firms and the messaging app is expected to expand Abu Dhabi’s ecosystem of creative and tech-enabled businesses and foster new collaboration opportunities.
Telegram was created by Russian brothers Pavel and Nikolai Durov in 2013 as a safe messaging app.
Faris Sohail Faris Al Mazrui, Head of Mubadala’s Russia and CIS Investment Program, said, “We believe Telegram is well-positioned for an inflection point that will turn it into a leading global technology firm.”
“The business represents a very interesting investment opportunity for Mubadala, and it will fit well into our larger portfolio of pioneering companies aiming to change their respective industries,” says Mubadala.
The company’s regional headquarters will be in the UAE following the investment.
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