According to a report by Bloomberg, sources familiar with the matter have revealed that Facebook is developing a mobile app, expected to be unveiled sometime in March, that can track the location of each user with their smartphone.

The app has been developed to benefit users by enabling them to find Facebook friends that are nearby. This feature made a significant appearance at the South by Southwest Conference last year, where a number of emerging apps had the ability to introduce people to others using the same app around them.

Facebook too will benefit from the launch of this new app by allowing advertisers to target users based on their location, routine and habits as the social network aims to profit from the use of Facebook heavily accessed through mobile devices.

The app is supposedly being developed by a former Google employee, Peter Deng as well as engineers from  location based companies Glancee and Gowalla that were previously acquired by Facebook in 2011.

It is likely to raise more concerns over Facebook’s privacy policies, which are already being scrutinized by regulators at home and abroad.