Reddit grabs front page headlines; raises $250M in Series-E funding

One of the leading social media platforms- Reddit has made it to the front page of the internet following its announcement of securing USD 250 million in Series E funding round. The company has claimed its name as ‘front page of the internet’ for the role the Subreddit played in one of the recent meteoric rise of the values of GameStop stock.

It has been reported that the funding round was led by Vy Capital, a venture capital firm, and this round allowed the company’s overall valuation to double to a whopping USD 6 billion. Moreover, the funds raised will enable Reddit to make strategic investments in areas including video, consumer products, advertising, and global expansion. Besides, it would also be used to augment the employee headcount by the end of 2021.

Some of the other investors in this funding round include Inclusive Capital, current investor Advance Publications, and others. It would be essential to mention that Chinese tech giant- Tencent has led its former funding round in 2019, where it raised somewhere around USD 300 million back then.

In fact, in December, the social media giant had acquired a short-video platform Dubsmash to offer its users access to latter’s short-video creation and editing tools. This enabled the company to scale up its advertising business, with direct advertising remuneration rising to 90% in the last quarter from the year-ago period.

Meanwhile, in a statement released by the company, it was mentioned that Reddit is continuing to invest in building and enhancing the way people connect on its platform, either conventionally through text based conversations or via video or live streaming. The media giant has further decided that this stands to be a pivotal opportunity for them to make strategic investments in the company to expand its reach in the digital platform worldwide.

Source Credit: https://techcrunch.com/2021/02/08/reddit-raises-250-million-in-series-e-funding/