Discord has raised $50 million at a valuation of $1.65 billion, the company disclosed on Thursday.
The new funds were first detailed in documents Discord filed last week in the state of Delaware, and which were provided to Cheddar on Thursday by Lagniappe Labs, creator of the Prime Unicorn Index. Discord then confirmed the details later on Thursday in a statement shared with Cheddar.
With roughly 100 million users, Discord has quickly become the most popular messaging platform for gamers. The free app is available across a wide range of devices and incorporates video calling alongside Slack-like text messaging in user-created channels. App analytics firm Apptopia estimates that 5.2 million people use the app daily and that its second biggest market after the U.S. is Brazil.
Discord has raised slightly more than $100 million since its founding in 2015 and commanded a $775 million valuation as of February 2017. Past investors in the company include Benchmark, Spark Capital, IVP, and Greylock.
In a statement shared with Cheddar confirming its new round of funding, Discord said it would use the additional $50 million to fuel its international expansion and the development of its Nitro subscription offering, which unlocks additional features like customizable emoji and higher-quality screen sharing when playing games.
“In general, we like to celebrate building product for gamers more than raising capital to support the growing platform," Discord spokesperson Tail Fischer told Cheddar. "We can confirm that a $50M investment at a valuation of $1.65B has been made in Discord in addition to a small secondary planned to reward our hard working early employees. We cannot share any additional details but can say that Discord will use this investment to stay focused on its goal of international growth and expansion, more investment in Nitro, and continuing to build more ways to make Discord the best way for gamers to connect through their love of video games.”
In recent months, Discord has started cozying up to game developers like Riot Games and Blizzard and hiring gaming industry veterans, including former Twitch VP Andy Swanson as Head of Publisher Relations last year. Discord hopes to integrate its chat features directly into popular games in the coming months, according to a person close to the company.
Discord’s soaring valuation comes even as the company has had trouble weeding out abuse and hate speech on its platform. The app has cracked down on alt-right groups in the past.
Update: This story has been updated with Discord's confirmation of its $50 million funding round and the company's updated valuation of $1.65 billion.
Reporting by Alex Heath.