Reddit has raised $250 million and doubled its valuation to $6 billion following the GameStop trading saga
- At its last valuation in 2019, Reddit was worth $3 billion.
- The fundraise follows Reddit's role in the trading frenzy of
Gamestopand other " meme stocks."
Reddit has nabbed $250 million in funding, doubling its valuation to $6 billion, as it rides the r/Wallstreetbets wave.
Reddit told the Wall Street Journal the late-stage funding round was led by venture capital firm Vy Capital. The company's last fundraise was in February 2019, when it raised $300 million at a $3 billion valuation.
"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," he added.
He did not mention Reddit's role in the mass trading of GameStop and other so-called "meme stocks," a story that dominated the news cycle after a group of Redditors banded together to buy heavily-shorted stocks.
In a previous interview with the Journal, Huffman said he supported r/WallStreetBets, the subreddit where the traders organized.
Read more: Inside Robinhood's 5 days of chaos
The story generated huge interest in Reddit, and it has already cashed in on the publicity by taking out an ad during the Super Bowl.
The site had already seen an increase in users over the course of the pandemic. Reddit said in December that its daily active user numbers for October were up 44% year-on-year.
Huffman said Reddit planned to double its employee count to 1,400 in 2021, and that it would use the latest cash injection to develop video, advertising, and consumer products, as well as pursuing international expansion.
- OpenAI CEO Sam Altman is privately reassuring developers using the company's tech that it won't compete with them beyond ChatGPT
- The crowd at the unveiling of Apple's Vision Pro headset let out a collective groan when they found out how wildly expensive it was
- My twin and I were in separate classrooms in school. Our joint math lesson made me realize how silly that was.
- Workplace toxicity is common but not enough gets recorded, say HR veterans
- Sensex, Nifty50 likely to open on a tepid note amid mixed global cues: Adani group, Torrent Power, Mazagon Dock among stocks to watch
- These midcap stocks can be the next multibaggers, according to Goldman Sachs
- Auto and BFSI seen driving India Inc’s earnings growth this financial year
- Indian and Chinese households top the global food wastage list