Reddit’s valuation doubles to $6bn after fresh funding round
Reddit’s valuation has doubled to $6bn (£4.4bn) following a fresh funding round hot on the heels of a retail trading frenzy fuelled by the social media platform’s users.
The company said it had raised more than $250m from new and existing investors in a series E funding round.
The cash injection doubled Reddit’s valuation, which was previously set at $3bn following a funding round in February 2019.
The social media site, which has more than 50m daily active users, also said its ad revenue had increased 90 per cent year on year in the last quarter and will double its headcount this year.
“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 company said in a blogpost.
It comes after Reddit was plunged into the centre of a trading frenzy that pitted amateur traders against some of Wall Street’s largest financial institutions.
Stocks such as GameStop and AMC have experienced wild volatility in recent weeks after investors on Reddit forums such as WallStreetBets teamed up against US short-sellers.
The rally has attracted the attention of regulators in the US, though treasury secretary Janet Yellen last week said it was too early to know whether new policies were needed.