Reddit, a popular social media platform is gearing up to raise up to $700 million funding in a round led by Fidelity Management. It is reported that the platform is trying to triple its valuation to more than $10 billion.
Previously, the company stated that it raised $410 million from the same lead investor. Already, Reddit’s value doubled reaching $6 billion in February from a year ago. Other investors of Reddit include Andreessen Horowitz, an American venture capital firm, Tencent Holdings, Sequoia Capital, and Snoop Dogg.
Based in San Francisco and founded by Steve Huffman, Alexis Ohanian and the late Aaron Swartz in 2005, Reddit has been a household internet name for years with millions of experts and enthusiasts using it for niche group discussions.
As of January 2021, Reddit recorded over 52 million daily active users and more than 100,000 communities. It topped $100 million in advertising revenue in the second quarter of the year for the first time. This is a threefold jump as compared to the revenue generated from ads in the same period last year.