• Discord has confidentially filed for an IPO, eyeing a 2025 public debut.
  • The company is working with Goldman Sachs and JPMorgan as lead underwriters.
  • The communication platform's valuation peaked at $15 billion in 2021, with 2023 revenue hitting $575 million.

Discord's Road to Wall Street

Discord Inc., the voice-and-text chat platform that became a pandemic-era staple for gamers and remote workers alike, has taken formal steps toward a public listing. The San Francisco-based company filed confidentially with U.S. regulators for an initial public offering that could come as soon as 2025, according to people familiar with the matter.

Goldman Sachs Group Inc. and JPMorgan Chase & Co. are advising on the potential offering, these people said, marking a significant milestone for the nine-year-old startup. While the company hasn't finalized timing or valuation, the move signals growing confidence in public markets after two years of tech IPO doldrums.

From Gaming Roots to Mainstream Appeal

What began as a niche tool for gamers coordinating Fortnite raids has evolved into a broader communications platform with over 200 million monthly active users. The company has aggressively expanded beyond its core demographic, adding features like video calls and server subscriptions that helped drive revenue to an estimated $575 million last year.

"Discord's evolution mirrors how digital natives communicate today," said a tech banker not authorized to speak publicly. "Their challenge will be convincing public investors they can monetize that engagement without alienating users."

Valuation Questions Loom

The company last raised private funding at a $15 billion valuation in 2021 during the tech investment frenzy. Current private market transactions suggest some adjustment from that peak, though the IPO could test whether Discord can reclaim or surpass that watermark.

Spokespeople for Discord, Goldman Sachs and JPMorgan declined to comment. The company's founders, Jason Citron and Stanislav Vishnevskiy, have previously hinted at eventual public markets but emphasized building sustainable growth first.

Testing the IPO Waters

If successful, Discord's offering could reignite the tech IPO pipeline after a prolonged drought. Several other venture-backed companies including Chime Financial Inc. and Netskope Inc. are reportedly considering 2025 debuts, with Discord's reception likely serving as a bellwether.

Market conditions remain fluid, and people close to the process caution that details could change. Discord may yet pursue alternative financing options if public investor appetite proves tepid for loss-making social platforms - a sector that's drawn skepticism since Meta Platforms Inc.'s 2012 debut.

Correction: An earlier version of this article misstated Discord's 2023 revenue. The correct figure is $575 million.