Reddit raises $ 250 million at $ 6 billion valuation

Reddit said on Monday that it had raised more than $ 250 million in series E-financing from existing and new investors. Sources say the company raised the new financing at a pre-valuation of $ 6 billion.

Why it matters: The company has doubled its valuation since its last $ 300 million round of financing at a valuation of $ 3 billion in 2019.

Data: news reports; Graph: Andrew Witherspoon / Axios

Be smart: This is a great time for Reddit to raise money. The company is experiencing record downloads and traffic amid the populist revolution on Wall Street fueled by retail investors on Reddit.

  • In January, Reddit’s mobile app installed 6.6 million worldwide, a 43% month-on-month increase from about 4.6 million in December per Sensor Tower – the best month ever.
  • The company said in December they had 52 million active users daily.

Details: In a statement, the company said it would use the funds to make more strategic investments in Reddit, including video, advertising, consumer products and expansion into international markets. ‘

  • In December, Reddit acquired Dubsmash, the short-form video app similar to TikTok.

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