Path Finally Closes That Elusive Series C

It’s been a bumpy road for Dave Morin’s Path, as manic rumors over the last year have pegged the “private” social network at once as the subject of lagging growth, shrinking staff and potential acquisitions, while at the same time raising a mega $50 million round at a $500 million valuation.

Today, the company’s long path to a Series C appears to finally have come to an end. Having recently revealed an additional revenue stream with the launch of premium subscription plans and product additions like private sharing, over the last quarter, Path has been making moves that appear to have reassured investors of its long-term prospects.

Tonight, Kara Swisher reports that Path has raised $25 million and added at least one new investor in Indonesia’s Bakrie Global Group, bringing its total funding to $65 million.

Morin, who is also an ex-Facebooker, also told Swisher that, while the company closed a smaller round than its $30 million Series B, it was in fact an “up round.” As Path was reportedly valued at $250 million for its Series B, if it’s an up round, the company’s value has increased since April 2012 in the eyes of investors and it could be as high as $400 million.

What’s more, in November, TechCrunch Co-editor Alexia Tsotsis heard from sources that Path was closing a round of over $7 million that also included Morin’s friend and former Facebooker, Dustin Moskovitz. TechCrunch has again heard from sources that this is true — that Moskovitz is an investor in Path’s Series C — as we reported at the time.

Swisher also reports that Path’s existing investors, which include Greylock Partners, Kleiner Perkins, Index Ventures, Insight Venture Partners, Redpoint Venture Partners and First Round Capital, also participated in the round.

As to why Path opted for an Indonesian lead investor for its Series C? Morin explained in an interview with Re/code that he “was always looking” for a strategic investor in Asia, particularly in Southeast Asia. Morin said that Southeast Asia is one of the regions where Path’s traction is strongest, saying that it was even stronger “than people understand.” Bringing on Bakrie as its lead investor gives Path a partner that understands the market and can help it strategically expand and increase its footprint in Southeast Asia.

While it’s difficult not to see the raise (and improved valuation) as a positive sign, saying that it’s a sign where Path wants to be, particularly in the U.S., would be unfair. In conversation with Swisher, Morin admitted that Path still had a number of “challenges in the U.S. market” that it needs “to focus on.”

With Morin confirming that Path is now at 23 million customers, the challenge may not be a lack of traction, but stemming a leaky user base in the face of the changing social market and the explosion of young mobile social networks like Snapchat.

We have reached out to confirm all of the above with both Morin and Path and will update as soon as we learn more.