Social media Reddit announced it has raised more than USD 250 million in a new round of funding and that this means the company’s valuation is doubled to USD 6 billion. Reddit was recently in focus when small traders used the Reddit chat Wallstreetbets to boost value of shares in GameStop making small investors winners and hedge funds and banks the losers.
“Valuations are very high right now. It never hurts to raise money when there’s an opportunity to do so and Reddit had a strong year,” CEO Steve Huffman told the Wall Street Journal.
Reddit was valued at USD 3 billion after a funding round two years ago.
”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 blog post. It also said advertising revenue was up 90% in the last quarter from a year earlier.
Reddit says it has more than 50 million daily users.