Snapchat, an app for sending photographs and videos, claims to be worth $19bn (£12.3 billion), and is seeking a new round of funding that would value the company as much.
The company is looking to raise another $500m (£325m) in a new round of funding, Bloomberg reports.
The source, who talked to Bloomberg under promise of anonymity, said that the executives are in advanced discussions with fund managers.
The app which allows people to send images and videos which disappear moments after being viewed would be valued at $16bn (£10.37 billion) to $19 billion (£12.3 billion), making it the third most valuable company in the world whose shares are not publicly traded.
Data from CB Insights shows that Snapchat would be right behind Chinese phone manufacturer Xiaomi (valued at £29.16 billion) and car-booking app Uber (worth £25.92 billion).
The app was developed by Evan Spiegel, who turned down a $3 billion (£1.94 billion) takeover offer from Facebook in 2013.
Snapchat lets people take and draw on photos, then send them to select friends or add them to a public “story.” The photos and videos disappear seconds after the recipient views them. The company says its users - the app is popular among teens - send more than 700 million disappearing “snaps” and view more than 500 million stories daily.
It’s believed that Snapchat is particularly interesting to advertisers because of its mostly younger audience, compared to other social media sites.
Last year, Snapchat started showing short ads which disappear once clicked on, just like regular Snapchat entries.