Mubadala Investment Company, the Abu Dhabi-based sovereign investor, has invested $75 million in five-year pre-IPO convertible bonds of Telegram, the social media platform, with Abu Dhabi Catalyst Partners investing a further $75 million, the companies said in a joint statement on Tuesday.

Mubadala manages a global portfolio of $232 billion aimed at generating sustainable financial returns for the Government of Abu Dhabi.

Telegram, which has its global headquarters in the UAE, has over 500 million monthly active users on its social media platform. It was launched in 2013 by brothers Pavel and Nikolai Durov. The company plans to open an office in Abu Dhabi Global Market as a launchpad for global growth.

Faris Sohail Faris Al Mazrui, Head of Mubadala’s Russia and CIS Investment Program, said Telegram's user base has reached a critical mass that places it amongst global tech giants.

“We believe that Telegram is well-positioned for an inflection point that will transform it into a leading global technology company. The company represents a very promising investment opportunity for Mubadala and will sit well within our wider portfolio of pioneering companies looking to transform their respective industries. Our investment in Telegram establishes a strategic partnership for us to further strengthen Abu Dhabi's technology ecosystem as well as bring new levels of tech skills and talent to the capital,” he added.

Pavel Durov, founder and CEO of Telegram, added: “We are honoured by the $150 million investment into Telegram from Mubadala and Abu Dubai Catalyst Partners. We look forward to developing this strategic partnership to continue our growth in the MENA region and globally.”

In recent years, Mubadala has been expanding its focus on the technology sector through a strategy of direct and fund-of-fund investing from early-stage venture capital to growth.

Over the past 12 months, it has made a number of global technology investments, including in autonomous driving technology company Waymo, AliExpress and Jio Platforms.

(Writing by Brinda Darasha; editing by Seban Scaria)

brinda.darasha@refinitiv.com

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