Internet company Yahoo has commited to investing in instant messaging service Snapchat’s latest round at a $10bn valuation, sources have told the Wall Street Journal, pegging the investment at $20m.
The cash will be added to a $20m commitment made by venture capital firm Kleiner Perkins Caufield & Byers (KPCB) in May.
The series D funding would be added to approximately $144m raised by Snapchat from investors including internet company Tencent since it was formed in 2011.
The news emerged as TechCrunch reported that Snapchat was interested in acquiring US-based mobile messaging app MessageMe, before Yahoo bought it last week for a price stated by TechCrunch to be between $30m and $40m.
MessageMe’s service will be shut down by Yahoo, with eight of its employees set to work on an instant messaging service for its new parent.
The company raised $11.9m across two rounds last year that were funded by internet company Google’s corporate venturing fund Google Ventures, as well as other backers including Greylock Partners, True Ventures, First Round Capital, SV Angel, Resolut.vc, Andreessen Horowitz, and Social+Capital Partnership.
Truecaller, the Sweden-based operator of a global online phone directory that raised $60m yesterday from Access Partners, Atomico, Open Ocean, Sequoia Capital and KPCB, was reportedly also interested in buying the company.