The audio-based social media startup Clubhouse announced Sunday it had secured an undisclosed amount of funding in a Series C round led by existing investor Andrew Chen, of Andressen Horowitz, as it looks to scale up in face of rising competition.
What Happened: Clubhouse named DST Global, Tiger Global Management, and Elad Gil as investors who participated in the funding round, which according to a Reuters report, values the company at $4 billion.
Bloomberg News had earlier this month reported that the startup is looking to raise fresh money at a $4 billion valuation.
The fresh funding comes just three months after its previous funding and amid a growing interest of rivals in launching a similar product.
See Also: Twitter Looked To Acquire Clubhouse In $4B Deal: Report
Facebook Inc (NASDAQ: FB) will on Monday announce a suite of new audio products, including its own take on Clubhouse, as well as a push into podcasts aided by Spotify Technology S.A. (NYSE: SPOT), according to a Recode report.
The San Francisco-based Clubhouse allows app users to host their own online podcast shows. Listeners can tune in to hear interviews or discussions on a range of subjects and also participate in live discussions. It has recently introduced a feature that will help creators monetize their content via the app.
Why It Matters: The startup, barely a year old, has seen its popularity rise, forcing more established rivals like Twitter Inc (NYSE: TWTR), Microsoft Corp-owned LinkedIn (NASDAQ: (MSFT)), Facebook, and Slack Technologies Inc (NYSE: WORK), to try out Clubhouse-like audio features on their platforms.
Twitter CEO Jack Dorsey is bullish on the potential of the social audio-chat feature and is trying out Spaces, currently in beta form and it is expected to be launched soon.
Clubhouse is currently a free-to-use app and available only on Apple Inc’s (NASDAQ: AAPL) iOS platform. It currently does not run any advertisements. The startup is exploring options to make the app available on the Android platform as well.
price Action: Facebook shares closed 0.53% lower at $306.18 on Friday, and Twitter closed 2.22% lower at $70.12.
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