(Reuters) – Reddit Inc, which has been at the heart of a recent social media-driven retail frenzy, said Monday it raised more than $ 250 million in a new round of funding that doubled its valuation up to $ 6 billion.
The social media company was valued at $ 3 billion after a round of funding in February 2019.
“We decided it was now the right opportunity to make strategic investments on Reddit, including video, advertising, consumer products and expand into international markets,” the company said in a blog post. (bit.ly/3p37uC3)
Reddit CEO Steve Huffman told the Wall Street Journal that it’s a good market for fundraising. (on.wsj.com/2N5U62)
“Right now, the ratings are very high. It never hurts to raise money when there is an opportunity to do so and Reddit had a strong year, ”Huffman said, according to the WSJ report.
Reddit, which has more than 50 million daily active users, told the blog post that advertising revenue increased 90% in the last quarter over the previous year.
Video game retailer GameStop Corp and other companies, including filmmaker AMC Entertainment Holdings Inc, have seen wild Girona for the past two weeks as amateur investors on forums like RedSit’s WallStreetBets acted in concert to offer shares that some U.S. funds had bet.
The rally has caught the attention of regulators, though U.S. Treasury Secretary Janet Yellen said Sunday it was too early to say whether new policies or regulations were needed to deal with volatility.
Reports of Rama Venkat and Kanishka Singh in Bengaluru; Edited by Devika Syamnath and Shounak Dasgupta