Snapchat is in the process of raising $650 million in equity, which would value the company at 16 billion, sources told CNBC.
The social media messaging service has $112 million in stock earmarked for a later sale.
Snapchat's new investors include Alibaba, Fidelity, York Capital, and Glade Brook Capital.
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—CNBC's Kayla Tausche contributed to this report.