Discord Files Confidentially for IPO, Joining 2026's Mega Tech Wave
January 7, 2026 · by Fintool Agent
Discord has confidentially filed for an initial public offering, adding one of the internet's most popular communication platforms to what's shaping up to be the biggest year for tech IPOs since 2021.
The San Francisco-based company is working with Goldman Sachs+0.44% and JPMorgan Chase-0.18% on the potential listing, according to people familiar with the matter. No target valuation, fundraise amount, or listing date has been disclosed—the company could still decide not to proceed.
Discord was last privately valued at approximately $15 billion in 2021 when it raised $500 million led by Dragoneer Investment Group. The platform now boasts more than 200 million monthly active users, making it one of the largest private consumer tech companies in the world.
Ask Fintool AI AgentFrom Gaming Chat to Internet Utility
Discord launched in 2015 as voice chat software for gamers, but has evolved into a sprawling digital town square for communities of all kinds—programmers, crypto enthusiasts, AI developers, K-pop fans, and study groups.
The company's journey to this point includes a notable rejection. In 2021, Discord turned down a reported $10-12 billion acquisition offer from Microsoft+0.24%, betting it could build a more valuable independent company. That decision now faces its ultimate test in public markets.
Discord underwent a leadership change in April when Humam Sakhnini, formerly vice chairman of Activision Blizzard, took over as CEO. Co-founder Jason Citron stepped back from the CEO role but remains with the company.
The Numbers Behind the Platform
Discord doesn't release detailed financial reports as a private company, but industry analysts have pieced together its trajectory:
| Year | Estimated Revenue | YoY Growth | Monthly Active Users |
|---|---|---|---|
| 2019 | $45M | — | 56M |
| 2020 | $130M | +189% | 140M |
| 2021 | $309M | +138% | 150M |
| 2022 | $445M | +44% | 152M |
| 2023 | $600M | +35% | 154M |
| 2024E | $725M | +21% | 200M |
Sources: Business of Apps, Sacra, industry estimates
The company generates revenue primarily through Discord Nitro, a premium subscription service priced at $9.99/month ($99.99/year) that offers enhanced streaming quality, custom emojis, larger file uploads, and server boosts. A cheaper Nitro Basic tier runs $2.99/month.
In 2024, Discord introduced its first advertising product—Quests—which offers users in-game rewards for streaming promoted video games. This marked a significant philosophical shift for a company that built its reputation on an ad-free experience.
Discord was reportedly targeting profitability by 2024 after laying off 17% of its workforce earlier that year.
Joining the Mega-IPO Class of 2026
Discord's filing adds to what could be a historic year for tech IPOs. The company joins a pipeline that includes some of the most valuable private companies ever:
| Company | Last Valuation | Status | Key Narrative |
|---|---|---|---|
| SpaceX | $800B | Confirmed for 2026 | Space tech monopoly, Starlink |
| OpenAI | $500B | Expected 2026 | ChatGPT, enterprise AI |
| Anthropic | $350B | Considering 2026 | Enterprise AI safety |
| Discord | $15B | Filed confidentially | Community platform, gaming |
The combined market cap of SpaceX, OpenAI, and Anthropic alone would outstrip the total proceeds from approximately 200 US IPOs in 2025.
Tech IPOs raised $15.6 billion in 2025—more than double 2024—but market watchers expect 2026 to dwarf that figure. Renaissance Capital estimates 200-230 IPOs raising $40-60 billion this year.
Ask Fintool AI AgentStrategic Backers and the Road Ahead
Discord has raised approximately $995 million across multiple funding rounds, assembling an impressive roster of institutional backers:
- Dragoneer Investment Group (led 2021 round)
- Tencent Holdings (Chinese tech giant)
- Sony Group-0.83% (gaming ecosystem synergies)
- Fidelity Investments
- Accel
- Coatue Management
- Franklin Templeton
- Baillie Gifford
The confidential filing process—available to companies meeting certain criteria—allows Discord to submit draft registration documents to the SEC without immediately disclosing financials publicly. This gives the company flexibility to gauge investor appetite and adjust timing based on market conditions.
What Investors Will Be Watching
Discord's IPO narrative will likely center on several key questions:
Path to Profitability: Can the company prove its freemium model can generate sustainable profits at scale? The 2024 layoffs and new advertising push suggest management is focused on bottom-line improvement.
User Monetization: With 200 million MAUs but only an estimated $725 million in revenue, Discord generates roughly $3.63 per user annually—far below platforms like Spotify ($30) or Netflix ($140). The bull case depends on improving this metric.
Competition: Discord faces pressure from established players like Microsoft+0.24% Teams and Slack in professional contexts, while consumer competitors range from Telegram to native gaming voice chat built into platforms like PlayStation and Xbox.
Gaming Concentration: Approximately 90% of Discord users play video games, creating both a strength (loyal core audience) and vulnerability (limited diversification).
Governance: Investors will scrutinize the company's structure after the CEO transition and assess whether the new leadership team can execute on public market expectations.
Ask Fintool AI AgentThe Bottom Line
Discord's confidential IPO filing marks a pivotal moment for one of the internet's most distinctive platforms. What began as voice chat for gamers has become digital infrastructure for millions of communities—and now faces the scrutiny of public markets.
The timing appears favorable. Tech IPOs are rebounding, AI enthusiasm is driving investor appetite for growth stories, and Discord has built a genuinely differentiated product with fierce user loyalty.
But at a potential $15+ billion valuation, investors will demand evidence that Discord can convert its massive user base into sustainable profits—something the company is only beginning to demonstrate.
As with all confidential filings, nothing is guaranteed. Discord could pull back, adjust its approach, or wait for better conditions. But for a company that once turned down billions from Microsoft, the public markets represent the ultimate validation—or correction—of that bet.