MADHUMITA MURGIA: Snap Inc, the company behind disappearing messages app Snapchat has filed for its IPO, hoping for a valuation of $25 billion. The app, if it manages to raise the $3 billion that it hopes to, will be the third biggest US tech IPO, following companies like Chinese e-commerce giant Alibaba and Facebook, which itself raised $16 billion during its IPO.
The company first gained fame for being an explicit photo messaging app for young teens. Snapchat now brands itself as a camera app, and it wants its users to be playful, making it one of the most well-loved augmented reality apps. A range of philtres allows users to constantly play around, causing endless hilarity.
Snap Inc's business is no child's play. It hopes to raise $3 billion in what will be one of the biggest tech IPOs of recent years, according to [? new ?] documents.
The company listed three risk factors in its ability to grow-- Brexit, competition from larger companies, such as Facebook or Tencent, and possibly the most important one, Snap Inc has never turned a profit. Could this possibly turn its dream of a successful IPO into a nightmare?