In the realm of instant messaging apps, Telegram has carved a niche for itself, emphasizing user privacy and delivering a seamless messaging experience. Its journey took an intriguing turn towards the financial sphere as it ventured into the bond market, an activity that drew considerable attention from investors and market analysts alike. In a strategic move in 2021, Telegram issued its inaugural set of bonds, carrying a 7% coupon rate with a maturity date planned for 2026. These bonds were noteworthy, not only for their yield but also for their provision allowing conversion into shares at a preferential rate if Telegram decided to go public. Fast forward to the present, Telegram is revisiting the bond market with an offering that promises even higher returns—a 9% coupon rate with a maturity term extending to 2030, alongside similar conversion privileges contingent on an Initial Public Offering (IPO).
To comprehend the growing appeal of Telegram’s financial instruments, a retrospective glance into the platform’s 2021 bond issuance is warranted. The company embarked on a significant fund-raising exercise, successfully accruing $2.3 billion through its bonds. These bonds offered a 7% return and were distinctive for their convertibility into shares at a discounted rate pre-IPO. The initial terms included a 15% discount if the IPO was launched before March 2025, evolving to a 20% discount if the offering occurred prior to March 2026. With the first discount window elapsed, the focal incentive now rests on the 20% discount for early investors. The trading value of these bonds has remained robust, hovering around their issuance value, reflecting sustained investor confidence in Telegram’s future prospects.
The launch of Telegram’s most recent bonds, with their more lucrative 9% yield, builds on the success of the initial offering. Maintaining the option for conversion into shares at a 20% discount in the event of an IPO, these bonds present a significantly attractive investment proposition in a period characterized by relatively low interest rates. While these bonds are not yet available to investors, their imminent release is highly anticipated.
A pivotal factor bolstering investor interest in Telegram’s bonds is the company’s noteworthy transition to profitability. In 2024, Telegram reported generating a profit of $540 million, marking a sharp turnaround from its previous financial challenges. This achievement is underpinned by two main revenue streams: premium subscriptions and advertising revenue. The launch of its premium subscription in 2022 facilitated a steady increase in paid users, growing from a modest 0.75% of its user base in 2024 to 1.3% in 2025, equivalent to 13 million subscribers. With each subscriber contributing an average of $2.8 per month, expanding this segment to encompass 3% of its total users could potentially generate $1 billion annually from subscriptions alone. Furthermore, advertising revenue has seen a significant uptick, rising from $100 million in 2023 to $245 million in 2024, with forecasts predicting this figure to reach $350 million in 2025. By integrating video ads across public channels, akin to YouTube’s monetization model, Telegram aims to leverage its vast user base, offering free access to content for those viewing ads, while also providing an ad-free experience for premium subscribers.
Telegram’s expansive user base, which has soared to over 1 billion users by 2025 with 500 million active daily users since its inception in 2013, remains a cornerstone of its financial success. Despite the potential for the rate of new user acquisition to decelerate as the market matures, the opportunity for increased conversion of existing users to premium subscribers presents a substantial avenue for revenue enhancement.
With the introduction of its new bonds, Telegram offers a compelling investment opportunity that marries the potential for high yield with growth prospects in today’s financial landscape. The 9% coupon rate of these securities distinguishes them in a market where high-yield options are increasingly scarce. Beyond the allure of financial returns, these bonds carry the promising prospect of conversion into shares at a discounted rate, should Telegram proceed with an IPO. This aligns investor interests directly with the company’s future growth trajectory.
Driven by its recent attainment of profitability and backed by a formidable user base that foundationally supports its revenue diversification strategies, Telegram stands at a promising juncture. As the company continues to evolve its premium services and advertising platforms, it remains a compelling subject of interest for investors seeking engagement with a technologically innovative and financially robust entity within the competitive landscape of messaging applications. Telegram’s strategic maneuvering in the bond market highlights its assertive push towards growth and sustainability, making its bonds a standout investment in the current financial climate.
