Snap recently got a fresh infusion of cash from the Saudi royal family to help cling on to life, despite losing $353 million this quarter. Prince Al-Waleed Bin Talal has invested $250 million in exchange for a 2.3 percent stake in the company, tweeting a video of his meeting with CEO Evan Spiegel to publicize his position. The investment raises questions regarding the Saudi’s influence in the future of the company’s app, Snapchat.
This news comes after the reported loss of 2 percent of daily active users — down from 191 million to 188 million in just one quarter. Snap even confirmed it was due to their recently updated redesign.
Spiegel unveiled the update, hoping it would better align advertisers with their target audiences, and users quickly took a stand against it.
But why would the Saudi royal family invest money now?
Well, with investment capital in Twitter and Lyft, Prince Al-Waleed Talal isn’t really a stranger to the US tech industry. “Snapchat is one of the most innovative social networking platforms in the world and we believe it is just beginning to surpass its true potential.”
Also in the earnings report, average revenue per user jumped 65% to $0.96 in markets other than the US.
So, there is some hope, and that might be why Snap could be looking for more allies abroad, as it’s seen weak international growth after years of neglecting the developing world and its Android app’s performance.