US-based social media and commerce platform Pinterest has targeted mid-2019 for an initial public offering that would enable e-commerce firm Rakuten to exit, CNBC reported on Monday, citing people familiar with the matter.
Pinterest’s core offering is an image-based online community with more than 200 million monthly active users who can collect and post collections of photos or images aligned to their personal interests by ‘pinning’ them.
However, the company has branched out into e-commerce, enabling users to follow links to posted items they may want to buy, and provides information to businesses eager to find links between various interests.
The company’s main revenue generator however is advertising, particularly in fields such as beauty, travel, fashion and homeware, and it is looking to double its advertising revenue to $1bn in 2018.
Pinterest has so far raised about $1.25bn in funding, most recently securing $150m in June 2017 from existing investors that likely included Rakuten, at a $12.3bn valuation.
Rakuten’s first investment came when it led a $100m round for the company in 2012 that also featured Andreessen Horowitz, Bessemer Venture Partners, FirstMark Capital and assorted angel investors.
Investment banking firm Goldman Sachs, Wellington Management Company and existing backers Andreessen Horowitz, Bessemer Venture Partners, FirstMark Capital, SV Angel, Valiant Capital Management and Fidelity Investments provided $553m for Pinterest three years later.