Messaging platform Discord Inc has secured fresh funding of $500 million, valuing the startup at $15 billion, Bloomberg News reported on Wednesday, citing a person familiar with the matter.
What Happened: The funding was led by San Francisco, California-based private equity firm Dragoneer Investment Group. Other investors who participated in the financing include United Kingdom-based Baillie Gifford & Co, Coatue Management, Fidelity Management & Research Co and Franklin Templeton alongside existing investors, the report noted.
Some of Discord’s existing investors include Benchmark, Greylock Partners, Index Ventures and Spark Capital.
See Also: Discord Could Be Valued At $15B In New Funding Round
Why It Matters: Discord has been reported to be exploring an IPO.
The platform popular among video gamers said the funding will be used to “invest in new features and tools” and hire more employees, as per Bloomberg. Discord already has more than 150 million monthly active users, who use the service to communicate via voice, video and text.
Gaming as a segment is growing at a record pace, especially fueled by the COVID-19 pandemic that has forced people around the world to stay at home. Reddit co-founder Alexis Ohanian said 2021 would be a “defining year” for gaming.
Earlier this year, video streaming platform Netflix Inc (NASDAQ: NFLX) said it is moving into video games and Facbook Inc (NASDAQ: FB) announced plans to launch cloud gaming for Apple Inc (NASDAQ: AAPL) gadgets.
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