Reddit Inc has doubled in value to $6 billion as the social media platform at the heart of a month ago’s retail stock trading frenzy collected more cash to deal with the surge of new subscribers.
The organization, which presently has in excess of 50 million daily active clients, reported a $250 million fundraising round on Monday led by venture capital firm Vy Capital and added that it would utilize the new funds to extend further.
Reddit was esteemed at $3 billion in its last round in February 2019, and the surge in its worth follows a 90% hop in advertising revenue from a year back.
“We decided that now was the right opportunity to make strategic investments in Reddit including video, advertising, consumer products, and expanding into international markets,” the organization said in a blog post.
The platform has accumulated consideration in the previous month for the role of its forums in driving huge changes in the share cost of videogame retailer GameStop Corp, cinema operator AMC Entertainment Holdings Inc and various other mid-sized and already disliked organizations.
Reddit Chief Executive Officer Steve Huffman told the Wall Street Journal it was a decent market to raise funds.
“Valuations are very high right now. It never hurts to raise money when there’s an opportunity to do so and Reddit had a strong year,” Huffman said, as per the WSJ report.
Reddit isn’t the lone organization to have profited by the frenzy, with audio application Clubhouse likewise seeing its valuation surge to $1 billion in the wake of raising new funds a month ago.
Reddit, which tallies any semblance of Andreessen Horowitz, Sequoia Capital and Tencent Holdings among existing supporters, was established in 2005 by current CEO Steve Huffman, entrepreneur Alexis Ohanian and the late Internet activist Aaron Swartz.
It became well known because of its message boards that permit anybody to post messages or articles and ask the community to vote up or down on those points.
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