Messaging app and social network Path has raised $50 million in a new funding round according to TechCrunch. The company is now at a $500 valuation, but is still in search of a lead investor. This is a significant jump from the last funding round for the company which occurred last April where it was only valued at $250 million.
Previously, there were reports that the company had been looking to raise anywhere between $75 to $100 million in funding for a $1 billion valuation. It had reportedly received an offer to be acquired by Google for $100 million back in 2011.
Though it does have a reported over 12 million active users, the month of active users has declined. According to Onavo Insights, 1.9 percent of iPhone users have used the application in June, down from 2.5 percent of users in May.
While it is a difficult time to secure funds in general, one of the reasons why it may not reached the $1 billion valuation it expected is because of its compromising growth tactics. Since this article was shared, the app’s popularity has dwindled. In taking a look at AppData, the app had been more prominent in the iOS app store, reaching as high as the number 25 free app. Today, it is only the 363 top free app.