Reddit said Monday it has raised more than $ 250 million in Series E funding from existing and new investors. Sources say the company has raised the new funding at a pre-money valuation of $ 6 billion.
Why it matters: The company has doubled its valuation since the last $ 300 million round of funding against a valuation of $ 3 billion in 2019.
Be smart: It’s a great time for Reddit to start raising money. The company is experiencing record downloads and traffic amid the Wall Street populist revolution seeded on Reddit by private investors.
- In January, Reddit’s mobile app saw 6.6 million installs worldwide, up 43% month-over-month from approximately 4.6 million in December, per Sensor Tower – its best month ever.
- The company said in December that they have 52 million active users every day.
Details: In a statement, the company said it will use the funds to make more strategic investments in Reddit “including video, advertising, consumer products and expansion into international markets.”
- In December, Reddit acquired Dubsmash, the short video app similar to TikTok.
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