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Reddit’s valuation reaches $6 billion after raising $250 million in Series E funding

Reddit's valuation reaches $6 billion after raising $250 million in Series E funding

The ‘front page of the internet’ better known as Reddit is in the 16th year of operation. This platform has a massive number of users and the numbers are increasing rapidly. For the convenience of the users, Reddit announced that they will ‘double the number of employees it has over this year to around 1,400 after raising $250 million in a new funding round’. As of now, Reddit has 700 employees globally. Following this Reddit has doubled its evaluation to $6 billion.

Reddit to double their employees from 700 to 1400

The news of the new funding round circulated the internet and became the talk of the town as the site’s r/WassStreetBets subreddit gained massive attention for its role in increasing the share prices of GameStop, AMC, and other few companies. Reddit CEO Steve Huffman stated that the company will utilize the funding in the video, advertising, consumer products, and international expansion.

The officials added, “We have come a long way in recent years to focus more on the needs of the hundreds of thousands of communities that make up Reddit. We have dedicated ourselves to Reddit because we believe in the power of communities that provide a sense of belonging and connection as real as the ones we make offline.”

Reddit’s 5-sec Super Bowl ad gained substantial attention as well. The company invested all of this marketing budget on a single ad which is outrageous. Reddit’s spot required viewers to pause their television screens to read it, proclaimed, “Wow, this actually worked.”

Back in 2020 Reddit revealed their number of active users for the first time “as a more reflection of our user growth and to be more in-line with industry reporting”. The numbers were massive, with 52 million daily active users. Although this number may look small if we compare it with other platforms like Facebook (1.85 billion daily users), Snap (265 million daily users), and Twitter (187 million daily users) but the number of active users in Reddit is climbing the hill in a good pace. There’s no denying that sooner or later Reddit will rival other platforms.

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