After raising $60 million in Series B funding, Snapchat will focus on scaling its ephemeral messaging service and hiring more engineers, according to a report by AllThingsD.
Snapchat messages disappear quickly after they are viewed, making the mobile app popular among teenagers. Launched in 2011, the company said its users are now sending more than 200 million messages a day.
“But in order to continue scaling while developing the Snapchat experience, we needed to build a bigger engineering team and figure out how to pay our server bills,” the Snapchat team wrote in a blog post.
Institutional Venture Partners led the funding round with participation from General Catalyst Partners and existing investors SV Angel, Benchmark Capital, and Lightspeed Venture Partners. This brings the total amount raised to approximately $75 million.
Additionally, Snapchat has added Sony Entertainment CEO Michael Lynton as an independent member of its board.
Snapchat co-founder Evan Spiegel told AllThingsD that although the company does have a VP of monetization, Philippe Browning, and is interested in business models such as in-app transactions and native advertising, the company has no immediate plans to monetize the service.