The mobile photo-sharing service Instagram has bought a startup that creates creative edge-focused content and will pay $1 million to acquire it, according to people familiar with the deal.
Instagram, which launched in 2012, plans to spend about $3 billion in annual revenue and about $1 billion in gross revenue by 2020, the people said.
The acquisition of Instagram Creative Edge marks the latest sign that the platform is increasingly focused on bringing creative content to users and advertisers, as it continues to make headway with a range of services that offer content creators and brands more direct reach.
Instagram’s growth has accelerated in recent months as it makes money on advertising and through advertising deals with Google.
The platform has about 3.4 million monthly active users, according the company, and its overall user base has grown by 10% to 1.4 billion over the past three years.