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Snapchat is marching towards a $25bn March IPO

Jessica Morris
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Snapchat is expected to have 58.6m users in the US by the end of 2016 (Source: Getty)

Photo-messaging app Snapchat is reportedly working towards an initial public offering (IPO) as early as late March which would value the firm at (£19.8bn) $25bn or more.

The figure would be significantly higher than Snapchat's most recent valuation of $17.81bn, which was based on a $1.81bn financing round in May, the WSJ reported.

It would also mark the biggest tech IPO since China's Alibaba went public in 2014.

"We aren't commenting on rumours or speculation about any financing plans," the company said in a statement.

Snapchat recently changed its name to Snap Inc to reflect its first foray into hardware with the launch of Spectacles — sunglasses that can record up to 30 second videos at a time.

The company made $3.1m in advertising revenue for the first 11 months of 2014, according to leaked documents.

It's expected to have 58.6m users in the US by the end of 2016, a number which is likely to jump 13.6 per cent to 66.6m by next year according to researcher eMarketer.

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