Snapchat’s valuation hits $20.9 billion after turning down Facebook’s billions

Mobile messaging app Snapchat is now reportedly worth $20.9 billion ($US16 billion), after the company raised $US537.6 million in a sale of common stock to investors.

According to a Bloomberg report, the funding round comes as the three-year-old company prepares for an eventual initial public offering.

In a filing to the US Securities and Exchanges Commission, the company disclosed it is attempting to issue an additional $US112.36 million to investors, bringing the offering to a massive $US650 million.

The $US16 billion figure sees Snapchat match the massive $US16 billion Facebook paid for rival mobile messaging app WhatsApp in February 2014.

By contrast, Facebook reportedly offered to pay $US3 billion for Snapchat in November 2013, an offer that was turned down by the mobile messaging startup.

Snapchat, an app used largely by a millennial user base, was the fastest growing social app in 2014, growing 56% in a year according to the Global Web Index.