Reddit achieves $10 billion valuation with fresh funding

Reddit said on Thursday that it will raise up to $700 million in a fundraising round led by Fidelity Management valuing the social media company at over $10 billion.

Reddit said the company has already raised $410 million from Fidelity in its second round of funding.

Reddit has been in focus since small-time traders launched a battle against Wall Street analysts on the platform. The traders have caused significant surge in shares of companies such as GameStop and AMC.

In February, value of Reddit had already doubled to $6 billion due to the frenzy.

The company, founded by Chief Executive Steve Huffman, entrepreneur Alexis Ohanian and the late Internet activist Aaron Swartz in 2005, is a popular platform but has not made noteworthy development as a business.

Other similar companies, founded around the same time, have much higher valuations including Twitter Inc at $52 billion while Facebook Inc at $1 trillion.

Reddit had more than 52 million daily active users and over a 100,000 communities as of January compared to nearly 2 billion daily active users of Facebook in June and Twitter’s 206 million monetizable daily active users, the users who see ads on the platform.

(With inputs from Reuters)

Picture Credits: Reuters