Telegram Founder in Talks to Raise Debt Amid App’s Explosive Growth

Telegram in the past week experienced a sharp influx of new users who flocked to the private messaging app after rival WhatsApp changed its privacy policies and Facebook and Twitter took a harder line on President Donald Trump and users promoting violence.

That growth comes with mounting costs. The Dubai-based startup, which has yet to generate revenue and has been mostly funded to date by co-founder Pavel Durov’s personal fortune, has discussed with banks and investors raising hundreds of millions of dollars in debt that would convert to shares in an eventual public offering, said two people familiar with Durov’s thinking. One of the people said the funding could top $1 billion but cautioned that plans could change.