By
Tolu Ajiboye
March 22nd, 2024
Back in February this year, Reddit raised $410 million from Fidelity in a Series E funding round. The total funds brought by the round made up $500 million, which made the company’s valuation total $6.5 billion.
American social news and entertainment company Reddit Inc is planning to conduct a new Series F funding round. According to Reddit, it is expecting to raise as much as $700 million and hit a $10 billion mark in its valuation.
According to the Reddit announcement, the initiative is a part of its expansion and innovation strategy. As Reddit has stated, it has already raised $410 million from Fidelity Investments Inc at a valuation of about $10 billion. It is expecting to bring further funds and secure additional financial commitments. Fidelity Investments Inc. and Research Company LLC will lead the fundraising round. Reddit said:
“We are optimistic and encouraged that not only are we resourced and capitalized to continue on our growth path, but also that our investors support our vision and want to deepen their stakes in our future. We will raise up to $700 million in Series F funding, led by Fidelity Management and Research Company LLC. and including other existing investors, at a post-money valuation of over $10 billion.”
Back in February this year, Reddit raised $410 million from Fidelity in a Series E funding round. The total funds brought by the round made up $500 million, which made the company’s valuation total $6.5 billion. Reddit has raised a total of $800.1 million across 6 funding rounds.
Recent Achievements and Growing Valuation of Reddit
Founded in 2005, Reddit is a San Francisco-based company behind a network of communities where people can dive into their interests, hobbies, and passions. Its founders were Chief Executive Steve Huffman, entrepreneur Alexis Ohanian, and the late Internet activist Aaron Swartz.
As of February 2021, Reddit ranked as the 18th most-visited website in the world and the 7th most-visited website in the US. In March this year, Reddit hired its first CFO. It has also expanded internationally to the UK, Canada, and Australia. Currently, about 42-49.3% of its user base comes from the United States, followed by the United Kingdom at 7.9-8.2% and Canada at 5.2-7.8%. India, the Philippines, and Brazil all have sizable Reddit audiences as well.
Besides, in January 2021, Reddit had its highest number of monthly downloads to date, with 6.6 million global downloads.
Notably, Reddit is rapidly expanding its advertising business. In Q2 2021, Reddit clocked $100 million in advertising revenues for the first time. This is as much as 192% up in comparison with the same period last year.
The site has more than 52 million active users and over 100,000 communities at present. This year, the company has also announced its plan to double its staff count to around 1,400 employees before the end of 2021.