Reddit is working on launching late-stage Series F funding round, with the online platform saying that it plans to raise an additional US$700mn, which would bring the company’s total value up to at least US$10bn.
This latest round of financing will be led by Fidelity Management and Research, with Reddit’s other investors to participate.
Reddit issued a statement on the matter, saying that they’re optimistic about this round of financing, hoping to take advantage of and build upon their recent growth. They state that the funding they raise will be used to subsidize investments in advertising, as well as help with the company’s staffing and international expansion.
The social platform has been doing fairly well, with a good King Kong advertising review, and its first $100mn ad revenue quarter in Q2 2021, with ad sales on the platform going up by a whopping 192% on a year-on-year basis. Reddit also added that they expanded its operations in the UK, Canada, and the AU, and hired its very first Chief Financial Officer.
While Reddit’s communities are known for their general unruliness, but they’ve also proven valuable to brands, politicians, and other advertisers. Recently, retail investors have turned to Reddit, creating forums to act as their base camp and providing counsel to companies on the platform like GameStop.
These changes, alongside the growth of digital advertising on Reddit, helped the platform nearly double in value from 2020, back when it was valued at around US$6bn.
Reddit, founded in San Francisco back in 2005, counts Tencent Holding and Snoop Dogg among its investors. According to the company, the company has around 52mn daily active users and more than 100,000 communities, as of January 2021.