Valued at $6 Billion
The latest round was Series E, and the business has now raised around $800 million to date. Two years ago, it raised $300 million in Series D round, led by Chinese tech giant business Tencent, valuing the company at $3 billion.
The new round was headed by both existing and new investors, Reddit said. The company now has a business valuation of $6 billion and hosts over 50 million daily users.
“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 an official blog post.
In the post, the social media business says it will use the proceeds to double the number of its employees in 2021 and pointed out its acquisition from last year of video-sharing platform Dubsmash.
“We are also readying to double the number of Reddit employees this year; it’s surprising not only for the pace of growth but also that such a relatively lean team has been behind one of the most visited websites in the world. We are confident in our mission to provide community and belonging to everyone and are well-positioned for the growth we have planned,” the company added in a statement.
Since it was founded in 2005, the company has battled with turmoil a number of times and attempted to clean up its act to attract advertisers and new users. The business still faces different challenges when it comes to balancing its commitments to hosting a number of communities.
The company has been at the center of the stock market drama that has started in January, where retail investors aggressively bought certain stocks, such as AMC Entertainment and GameStop, which were targeted by short-selling hedge funds.
Reddit said it secured $250 million in a Series E round to reach a business valuation of $6 billion. The company has raised around $800 million to date and plans to use a part of the funds to double the number of employees this year.