Reuters – Snapchat has raised $175 million in fresh funding from Fidelity Investments and other investors, according to a source familiar with the matter.
The investment is an extension of Snapchat’s Series F financing round, which the company began raising last year, the person told Reuters.
Fidelity bought shares of the company at .72 per share in February, the same price at which it bought Snapchat shares in March 2015, the newspaper reported.
The “flat round,” in which a company’s valuation does not grow despite an influx of new money, suggests Snapchat’s valuation may have grown too quickly and investors are now readjusting their expectations.
Still, at billion, Snapchat is the sixth mostly highly valued venture-backed company in the world, tied with Chinese ride-hailing company Didi Kuaidi.
The app provider has worked to expand its fledgling advertising enterprise – its only real form of income – and final month formed a partnership with Viacom, which gave Viacom exclusive rights to sell marketing about Snapchat’s content material.