Discord, a US-based messaging tool developer backed by internet group Tencent, has raised about $50m in a funding round led by venture capital firm Index Ventures, TechCrunch reported yesterday.
The round closed in January this year at a pre-money valuation of $725m, and included IVP, Spark Capital, Greylock Partners and Benchmark, according to sources, who added that the company may seek to raise additional funds soon.
Discord began life in 2012 as a game developer called Phoenix Guild, and later Hammer and Chisel, before pivoting in 2015 to focus on a text and voice-based chat platform for gamers.
Part of the proceeds from the latest round were used to buy shares from early employees to ensure a cohesive vision at the company, a source said. Existing investors were also given the option to sell shares but none did so.
Tencent took part in a $20m round in February 2016 that was led by Greylock with backing from YouWeb and Benchmark, after Discord, then still known as Hammer and Chisel, had received an undisclosed amount from Tencent, Benchmark and Studio 9+ in early 2015.
Discord raised $1.1m in 2011 from YouWeb, Accel and General Catalyst before adding $8.2m two years later in a series A round led by Benchmark Capital that featured media conglomerate Time Warner, Studio 9+, Accel, IDG Capital and GC Capital Partners.