Reddit raises $250 million, valuation hits $6 billion

Reddit, the social media platform has now doubled its valuation to $6 billion after a recent round of funding. Reddit has raised $250 million in funding led by venture-capital firm Vy Capital, The Wall Street Journal (WSJ) reported. The company was valued at $3 billion when it last raised funds in February 2019, according to WSJ report.

“It’s a good market to fundraise, valuations are very high right now. It never hurts to raise money when there is an opportunity to do so and Reddit had a strong year” Reddit Chief Executive Steve Huffman told WSJ in an interview.

A Reddit thread, ‘r/wallstreetbets’, blew up after the users had decided to buy stocks of companies like GameStop that the Wall Street Hedge Funds were heavily short-selling. The price of these shares shot up in a matter of days leading to giant Hedge Funds incurring huge losses. Huffman also revealed that the advertising revenue of the company has increased by 90 per cent in the December quarter of 2020.

“We are also readying to double the number of Reddit employees this year,” Reddit said in a statement.

The company has further said that its recent developments include the acquisition of short-form video platform Dubsmash that offers ‘highly polished video creation tools’ to the platform and “encourages under-represented creators to find a home on Reddit.”

“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 statement added.

TOPICS: Business Upturn Companies company fund-raising GameStop Global Markets Internet Reddit social media Technology

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Reddit raises $250 million, valuation hits $6 billion