Reddit said Monday it raised more than $ 250 million in Series E funding from existing and new investors. Sources say the company increased the new funding to a pre-cash valuation of $ 6 billion.
Why it’s important: The company has doubled its valuation since its last round of $ 300 million financing, with a valuation of $ 3 billion in 2019.
Be smart: Reddit is a good time to raise money. The company is experiencing record downloads and traffic amid the Wall Street populist revolution that was sown by retail investors on Reddit.
- In January, Reddit’s mobile app saw 6.6 million installations worldwide, up 43% month-on-month from December’s 4.6 million, by Sensor Tower: it is the best month in history.
- The company said in December it had 52 million daily active users.
Details: In a statement, the company said it will use the funds to make more strategic investments on Reddit “including video, advertising, consumer products and expand into international markets.”
- In December, Reddit acquired Dubsmash, the short-form video application similar to TikTok.
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