Pinterest Inc., the popular photo sharing app, has raised $367 million in its recent round of funding — valuing it at 411 billion and making it one of the most valuable startups in the world.
This is the eighth time the company has raised money in funding since it was started in 2009. In its recent round of Series G funding, Pinterest aims to raise $578 million. It will likely achieve its goal since it has already achieved more than half of its target, and there are still few weeks to go before the round is over.
It has already received funding of $764M dollars, in its past fundings. So, even if does not receives any additional funding in the coming weeks, it has already crossed the $1 billion mark. Pinterest has said that its funders include both new and previous investors but has not given any further details about them.
Even more surprising is the fact that the company has not generated any revenue since its inception. Company has not displayed any kind of advertisements on its site. This will be first year when company will focus on generating income, by charging companies for promoting their products.
So what it is about the company, which despite having no earnings has made it a favorite among these investors? First of all is the fact that it is one of the fastest growing online networks in the world. It offers a unique method of sharing images, by pinning them on a board. This method has proved to be very popular among users especially among women, who consist of over 70% to 80% of its total users.
Secondly, it has a huge potential for revenue generation. Marketers have also found it a useful platform for promoting their products as well as getting an idea about consumer’s desires. Up till now the marketers have been marketing products for free, however, now onwards they will be charged for promotion of products. The action is estimated to earn as much as $500 million by 2016. Naturally, investors are not willing to let such an opportunity pass by.
The photo sharing providing platform company said that it plans to speed up its global expansion, as it proves to be increasingly popular among users outside the US. Pinterest itself stated that it foreign users increased by 135% in 2014, and now constitute over 40% of its total users.