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The messaging tool out to crush Bloomberg is raising money at $1 billion valuation

Jul 27, 2015, 20:00 IST

A monster truck squashes a lesser vehicle.REUTERS/Juan Carlos Ulate

The messaging product that's out to claim market share from Bloomberg is raising new money, The Wall Street Journal reports.

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Symphony Communication Services is raising an unspecified amount of cash at a valuation of up to $1 billion, according to the report.

Symphony is currently testing out its chat network with investment banks and other clients. The company expects to fully launch its chat system later this year.

Investors in Symphony include Goldman Sachs, JPMorgan, Bank of America, Citigroup, Credit Suisse, Deutsche Bank, Wells Fargo and other financial services firms. Symphony was developed after the network of financial services firms led by Goldman acquired and rebranded another messaging platform named Perzo in 2014.

The news of the fundraising effort comes less than a week after The New York Department of Financial Services' Anthony Albanese sent a letter to the company's leadership requesting more information on Symphony's privacy settings.

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Symphony's rapid development comes as investors are pouring more money into the fintech sector, pitting digital startups against big banks and other companies in the financial services sector. Funding for fintech is currently at a post-crisis high.

The messaging space is also heating up. Slack took on about $160 million at a valuation of about $2.8 billion earlier this year.

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