Under pressure, Telegram pulls off an elusive milestone - a profit

App has added subscriptions, ads and video services, and used crypto to pay down its debt

In recent months, Telegram, the lightly moderated social media app, has held discussions with investors who lent it more than US$2 billion (S$2.72 billion). The goal: to reassure them that the company remains a viable bet after its founder Pavel Durov was arrested in France in August on charges related to illicit activities on the platform.

In the conversations, Telegram told investors that it was tackling its legal troubles head-on by policing more user-generated content. The company also said it had paid down a "meaningful amount" of its debt, according to an investor in the talks who was not authorized to discuss confidential information.

Telegram has been under increasing scrutiny around the world in 2024 for hosting illicit content from child predators, drug traffickers and other criminals. Telegram also faces pressure on another front: to prove it can make money.

For years, skeptics have questioned if a platform known for hosting toxic material could turn a profit. Unlike social media companies such as Meta, Telegram took an unusual business path: It did not raise money from venture capitalists, sell advertising based on user data, or hire aggressively to accelerate growth. Instead, it relied on Durov's fame and fortune to sustain its business, took on debt, and barrelled into the cryptocurrency market.

Now, Telegram is out to show it has found its financial footing so it can move past its legal and regulatory woes, stay independent and eventually hold an initial public offering. It has expanded its content moderation efforts, with more than 750 contractors who police content. It has introduced advertising, subscriptions and video services. And it has used cryptocurrency to pay down its debt and shore up its finances.