Snapchat is reportedly raising another $650m (£427m) in equity, placing the photo-messaging services value at $16bn, according to CNBC.

At the end of last month, CEO Evan Spiegel spoke at Re/codes Code Conference, saying that there were plans in place to take the company public eventually, and that the app was closing in on 100m daily active users.

The company raised $200m in Series E funding in March of this year, mostly from eCommerce firm Alibaba, which placed a $15bn valuation on the company. To date, the company has raised $848m in venture capital funding.

Snapchats popularity among the much-sought after youth market and its innovative use of video has allowed it to charge high rates to brands looking to advertise through its Stories and Discover features, despite the constrictions the app places on the format and targeting of advertising.

In May, there were reports that Snapchat was looking to invest in swipe-to-buy shopping app Spring. While a startup investing in another startup is an unusual move, it could enable Snapchat to explore social commerce or buy buttons within its app, opening up new areas for monetisation and revenues.