The History and Business of Telegram: From Vision to Success

Telegram has been in the news recently for the arrest of its high-profile CEO and founder in France. Pavel Durov was allegedly not cooperating with French authorities in giving details of illegal activities that were taking place on the messaging platform, and that led to his arrest. But how did an app — with a team of no more than 30 employees — end up becoming influential enough to lead to a geopolitical incident?

Telegram has become one of the most popular communication platforms globally. Known for its speed, security, and unique features, Telegram has a fascinating history rooted in a desire for privacy and freedom from governmental and corporate oversight. It has also evolved from a simple messaging tool into a multifunctional platform that supports businesses, communities, and developers. This article will explore the origins, growth, and business aspects of Telegram, tracing its journey from inception to global prominence.

Origins and Founding

Telegram was launched in 2013 by brothers Pavel and Nikolai Durov, who are also known for founding VKontakte (VK), the largest social network in Russia. Pavel Durov, often referred to as the “Russian Mark Zuckerberg,” envisioned Telegram as a response to the increasing government surveillance in Russia and other countries, particularly after his experiences with VKontakte, where he was forced out due to pressures from Russian authorities.

  • Pavel Durov: The public face and CEO of Telegram, Pavel is known for his strong stance on privacy and free speech. After his ousting from VK in 2014, he left Russia and has since been an advocate for decentralized and censorship-resistant technologies. He’s taken up citizenship of the UAE and France, and resides in Dubai. He’s also made waves for being one of the fittest founders out there.
  • Nikolai Durov: The technical genius behind Telegram, Nikolai developed the proprietary MTProto protocol, which powers Telegram’s encryption and ensures the app’s speed and security.

The idea for Telegram emerged after the Durovs experienced frustrations with insecure and slow messaging apps, combined with their concerns over surveillance by governments. Pavel Durov began working on a messaging app that prioritized speed, security, and ease of use. Nikolai developed the technical architecture, focusing on building a messaging system that could handle millions of users while keeping their data secure.

Key Features and Growth

Telegram quickly gained popularity due to its unique combination of features that set it apart from other messaging apps like WhatsApp, Facebook Messenger, and Signal. Some of the most distinctive features that contributed to its rapid growth include:

  1. End-to-End Encryption: Telegram offers end-to-end encryption in its “Secret Chats” feature, ensuring that only the sender and receiver can read the messages. Regular chats on Telegram are encrypted but stored in the cloud, allowing for synchronization across multiple devices.
  2. Cloud-Based Messaging: Unlike many other messaging apps, Telegram allows users to access their messages from multiple devices simultaneously without losing any data, thanks to its cloud-based storage system.
  3. Large File Sharing: Telegram supports file sharing up to 2 GB, a feature that was particularly useful for users who needed to share large media files, documents, or software.
  4. Supergroups and Channels: Telegram introduced “Supergroups” and “Channels” to allow users to create massive groups (with up to 200,000 members) and broadcast messages to unlimited followers. Channels became a key feature for influencers, media companies, and businesses to reach large audiences without intermediaries. There are channel from everything from housing society groups, file sharing, join Crazy Time on Telegram group, and even crypto and investment groups.
  5. Bots and Custom APIs: Telegram’s open API and the ability to create bots have made it highly popular among developers and tech-savvy users. Bots on Telegram can automate tasks, provide customer support, offer interactive experiences, and much more. This feature has also contributed to its use in a variety of business and technical applications.
  6. Stickers and Custom Themes: Telegram’s extensive library of animated stickers and the ability for users to create custom themes helped build a loyal user base, especially among younger users who appreciate personalization and creativity.

Rapid Global Adoption

In its first year, Telegram attracted millions of users, particularly in countries where freedom of expression and privacy were under threat. It saw significant growth in regions like the Middle East, Latin America, India, and Southeast Asia.

Key milestones in Telegram’s growth:

  • 2014: Telegram reaches 100 million active users just a year after its launch, with daily signups of around 350,000.
  • 2017: The app surpasses 200 million active users, driven by its growing popularity as a secure alternative to WhatsApp, especially in countries where users faced censorship and surveillance.
  • 2020: Telegram crosses 500 million active users as the pandemic forces more people to rely on online communication. The introduction of features like video calls and voice chats during the COVID-19 pandemic significantly bolstered its user base.
  • 2021: Following WhatsApp’s controversial privacy policy update, Telegram saw a massive influx of users—about 25 million new users in a single week.

Telegram’s privacy-focused approach, coupled with its evolving feature set, has made it particularly attractive to users concerned about the data practices of companies like Facebook and Google. It boasts of over 400 million users.

Business Model and Monetization

For many years, Telegram operated without any formal revenue model. Pavel Durov funded the company using his own personal wealth, emphasizing that Telegram was created as a non-profit endeavor to protect user privacy and avoid selling user data or showing ads, unlike other social media platforms.

However, as Telegram’s user base expanded and operating costs increased, the need for a monetization strategy became more apparent. In 2021, Pavel Durov announced plans to monetize Telegram while still preserving the core values of privacy and user experience.

Telegram’s Monetization Strategies:

  1. Premium Services: In 2022, Telegram introduced “Telegram Premium,” a paid subscription service offering enhanced features, such as faster download speeds, larger file uploads (up to 4 GB), exclusive stickers, and additional customization options. This approach allows users to pay for extra features without compromising the basic free services.
  2. Sponsored Messages: Another monetization avenue is “Sponsored Messages,” which are non-intrusive ads shown in large public channels with over 1,000 members. Unlike traditional ads, these messages are designed to respect user privacy by not collecting personal data for targeting purposes.
  3. Bots and APIs for Business: Telegram’s open API and the ability for businesses to create custom bots have led to some companies using Telegram as a business tool. Developers and companies can build on top of Telegram’s infrastructure to offer services, accept payments, and manage customer relations.
  4. Donations and Crowdfunding: Telegram has considered the option of introducing user-supported donations or crowdfunding initiatives to maintain the platform’s independence and avoid relying on venture capital or advertisements that could compromise its values.

Sustainability Concerns: Despite these monetization efforts, there has been ongoing speculation about how Telegram can continue to grow without selling user data or showing intrusive ads. The company has made it clear that any future revenue models will continue to focus on privacy, security, and user experience.

Controversies and Challenges

Like many global platforms, Telegram has faced its share of controversies, particularly around its encryption features. Governments and law enforcement agencies have expressed concerns that the app is used by criminals, extremists, and terrorists to communicate securely without fear of surveillance.

Major controversies:

  • Censorship and Government Bans: Telegram has been banned or temporarily blocked in countries like Russia, Iran, and China due to its refusal to comply with government requests for backdoor access to user data. Pavel Durov has repeatedly stood his ground, insisting that Telegram will never compromise on user privacy.
  • Misinformation and Extremism: Telegram has also been criticized for being a platform where misinformation, conspiracy theories, and extremist content can thrive. While Telegram has taken some steps to moderate content in public channels, it remains a platform with relatively lenient moderation compared to other social media platforms.
  • Competition with WhatsApp: While Telegram has positioned itself as a more secure alternative to WhatsApp, it continues to face stiff competition from the Facebook-owned app, which boasts over 2 billion users. WhatsApp’s massive user base and integration with the Facebook ecosystem pose a challenge for Telegram’s growth in certain regions.

Future of Telegram

Telegram’s future looks promising as it continues to expand its feature set, focusing on both individuals and businesses. With over 800 million active users by 2024, the app is becoming more than just a messaging platform—it’s evolving into an ecosystem for communication, business, and community building.

Key Future Developments:

  • Integration with Financial Services: Telegram has hinted at plans to integrate more financial services into the app, such as cryptocurrency payments or peer-to-peer payment systems. This could open up new monetization opportunities and further differentiate Telegram from competitors.
  • Expansion of Premium Services: As more users are willing to pay for additional features, Telegram’s Premium offering is likely to grow, with more advanced features and services for power users and businesses.
  • Continued Focus on Privacy: Despite the pressure from governments and regulators, Telegram is expected to maintain its strong stance on privacy and free speech. This will likely attract more users who are concerned about data privacy issues on other platforms.

Conclusion

Telegram’s journey from a privacy-focused messaging app to a global communication platform has been marked by rapid growth, innovation, and controversy. Founded by Pavel and Nikolai Durov with a vision to create a secure, user-friendly app free from government and corporate interference, Telegram has achieved tremendous success with millions of active users worldwide. As it continues to evolve, Telegram’s focus on privacy, its diverse set of features, and its growing influence in business and community-building will likely ensure its place as a major player in the tech landscape for years to come.