Telegram Business Model: How Telegram Makes Money

With more than 2 billion monthly active users worldwide, Facebook-owned WhatsApp is the most popular message app. But Telegram, launched in 2013, around four years after WhatsApp, has been slowly and steadily covering the grind .
More than 550 million users were actively using the service as of July 2021, with users increasingly flocking to Telegram after WhatsApp announced a contentious privacy policy update, forcing users to accept the update terms until 8th February 2021 .
ascribable to the public backfire, WhatsApp finally decided not to enforce the privacy update. still, this entire episode injected life into the consider around which messaging app — WhatsApp, Telegram ot Signal — should people opt to use to safeguard their privacy and security .
This web log will investigate why Parel Durov founded Telegram & how it makes money because the initiation principles and monetization mechanism influence its operation. Once we ’ ve learned all of that, we ’ ll besides see how Telegram ’ s privacy stacks against WhatsApp & Signal .
Telegram Founding Story
In 2006, Durov launched VKontakte, a Facebook knockoff that became Russia ’ s most popular social network site. In 2014, eight years subsequently, Durov sold his survive, remaining 12 % stake in the company for a reported sum between $ 300 and $ 400 million. In between the two events, Durov had an meet with the russian government, which forced him to give up VKontakte ’ s ownership and nudged him into founding Telegram .
Parel Durov, co-founder & the public face of Telegram, is much regarded as Russia ’ s Zukurberg in the media .
According to Verge, Russian authorities asked Durov to shut down VK pages operated by activists when anti-Putin protests broke out in 2011 amid allegations of election situate. Durov declined the request, responding by sharing a dog ’ s painting with its tongue out on his Twitter cover .
In an open letter published late, Durov said his decision of not complying with the government was motivated strictly by occupation motives, not political think. He argued that if VK was forced to restrict such groups and foreign social media companies were not, then the Russian social net would die a slowly death .
soon after this episode, Durov lost 48 % percentage of his VK impale through a fishy backroom bargain. United Capital Partners, an investment firm managed by aim Putin ally Ilya Sherbovich, bought Durov ’ s post, who only learned about it when a reporter reached out to him for gossip.

tied after the deal, though, Durov wielded majority control over VK. He had earlier secured voting rights of the 40 % percentage VK stake owned by russian internet giant Combined with his personal 12 % post, he held 52 % caller vote rights this way .
But United Capital Partners began to pressure Durov to focus on monetizing VK through more ad, and — partially owned by Alisher Usmanov, a russian businessman, besides believed to be a near ally of President Vladimir Putin — began pushing for a larger stake .
“ The goal of this deal was to put [ VKontakte ] under the control of businessmen who are friendly to the Kremlin, ” Nickolay Kononov, author of a bestselling ledger on VK, told Verge at the meter. For the uninitiate, the Kremlin refers to the russian Federation politics, similar to how the “ White House ” refers to the United States President ’ s executive position .
In April 2014, Durov ultimately succumbed to selling his remaining 12 % VK stake after resisting government imperativeness to release ukrainian protest leaders ’ data. Ivan Tavrin, then head executive of telecommunication provider MegaFon, besides controlled by Usmanov, bought Durov ’ s stake .
It was during his find with the russian forces that the idea of founding Telegram occurred to Durov. When he first refused to shut down activist groups in 2011, a SWAT team showed up at his door. In an interview with the New York Times, Durov said, “ They had guns and they looked very serious. They seemed to want to break the door. ”
During the SWAT draw, he called his brother, Nikolai Durov, co-founder of VK and Telegram. At that fourth dimension, he realized that he did not have a safe entail of communication, one that could not be possibly compromised by russian authorities .
however, VK ’ randomness destine had opened Durov ’ s eyes to the challenges of growing a digital communication chopine in Russia. so, Durov left Russia after selling his VK bet on, registering Telegram as an offshore entity to evade russian hindrance. He has, since then, been traveling with the core Telegram team, living like a nomad .
A class and a stop after its plunge, By Dec 2014, Telegram had more than 50 million monthly active voice users. Telegram crossed the 100 million MAU, 200 million MAU, 300 million MAU check in Feb 2016, March 2018 & October 2019 respectively. In Jan 2021, Durov announced that Telegram had crossed the 500 million MAU .
Because Telegram takes the privacy-oriented approach in product exploitation and market, the caller sees increase emergence during times of governmental restrictions in times of political agitation. Telegram besides sees growth when major services like Facebook, Instagram, and WhatsApp suffer technical outages .
Telegram Business Model

The shortstop answer to how Telegram makes money would be is through sponsored Messages — a tool that allows advertisers to promote channels and bots. Up until the patronize message ads were launched in November 2021, Telegram was financed personally by pavel durov. Telegram had besides raised $ 1 billion by selling bonds ( a human body of debt ) to investors .
now, let ’ s purse the long answer to how Telegram makes money. Telegram ’ s first assignation with making money came in the form of a $ 1.7 billion raise through an Initial Coin Offering in 2018, but the SEC halted the emergence in 2019, deeming it illegitimate .
For seven years, Durov kept Telegram afloat using the money he earned from selling his VK bet on. But with the kind of growth Telegram was seeing, sustaining the company strictly through his own money would be impossible. In 2020, Durov shared a message on his populace Telegram channel revealing his plans to monetize the serve .
first, Durov clarified that he has no plans to sell Telegram. He cited WhatsApp ’ s case, which after being acquired by Facebook, had to compromise on its original sight. In case you didn ’ t know, both the WhatsApp founders left the company after disagreements with their Facebook bosses. In fact, Brian Acton, one of WhatsApp ’ south founders late gave $ 50 Million for forming the Signal Technology foundation, a non-profit organization established to support Signal, the secret message app .
Signal ’ s floor aside, Durov besides made it clear Telegram will not charge regular users any money, nor will it show any ads in private 1-to-1 chats or group chats, which is Telegram patronize message ads launched in November 2021 will only be shown in large populace one-to-many channels with 1000+ members .
For the uninitiate, Telegram channels are like a public broadcast list without any limits on the audience size. To give you an model, Pavel Durov himself has a public distribution channel to which close to 10,000 people are subscribed .
To make sure Telegram sticks to its principle of protecting exploiter privacy, patronize message ads will be entirely based on the subject of the populace channels in which they are shown, and no drug user data will be used for any kind of individual target.

Durov has besides stated that as the sponsor message ads mature over time, Telegram besides plans to share ad gross with creators after recovering the money exhausted for running Telegram .
As per what Durov has communicated early, one can even expect Telegram to launch premium features to add an extra tax income pour. While existing features will continue to remain unblock, Telegram will roll out new features for Business users and power users. And since these new features will require extra resources, bounty users will be required to pay for them.

Telegram Vs. Signal Vs. WhatsApp. 

When it comes to privacy, one of the most hash out points is end-to-end encoding, and rightly so. Put simply, end-to-end encoding ensures cipher, including the message service, can see the subject of your messages .
In Telegram ’ second case, the app does not offer end-to-end encoding by default. It has a “ secret new world chat ” option, where exploiter communication is secured using end-to-end encoding, but this does not extend to groups .
so technically, unless you ’ re communicating using the confidential old world chat feature of speech, Telegram can access messages stored on its servers, to which it holds the key. Considering Telegram ’ s founding was based on the premise of exploiter privacy, and there are no severe claims of Telegram acting in badly religion, you could still trust Telegram with your content. But it would not be ideal because having end-to-end encoding would have made it impossible for Telegram to entree exploiter messages, even if they wanted to .
On the other hand, WhatsApp uses the open-source throughout encoding protocol developed by Signal, making all conversations, including group chats, secret by default. The trouble with WhatsApp, however, is that metadata, the information associated with the time and placement of the message, is not encrypted. indeed, while WhatsApp can ’ t read the actual message of your messages, it still knows who you ’ ve messaged and when .
Signal, compared to Telegram & WhatsApp, scores the highest points in the privacy game. not only are all conversations end-to-end encrypted, but it besides doesn ’ thymine collect metadata. The alone thing Signal has been criticized for using earphone numbers as its primary coil ID, but the company has said it doesn ’ t collect any data linked to the number. The process of alerting users when one of their call ’ south contacts joins Signal, intended to drive growth, is besides facilitated anonymously to maintain exploiter security .
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drumheadTelegram Business Model: How Telegram Makes Money [2021] article name

Telegram Business Model: How Telegram Makes Money [2021]


The short answer to how Telegram makes money is through sponsored Messages, which allow advertisers to promote channels and bots. Up until the sponsored messaging ads were launched in November 2021, Telegram was financed personally by Pavel Durov. Telegram had also raised $1 billion by selling bonds( a form of debt) to investors.


Muaaz Qadri

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