Reddit said Monday it raised more than $250 million in Series E funding from both existing and new investors.
What Happened: The social news aggregator and discussion website's current investors include Tencent Holdings Ltd (OTC: redacted), Andreessen Horowitz, and Sequoia Capital, according to Crunchbase.
Reddit has doubled its valuation to $6 billion in the latest funding round, which was led by Vy Capital, the Wall Street Journal reported.
Reddit CEO Steve Huffman said that it was a 'good market to fundraise.'
'Valuations are very high right now. It never hurts to raise money when there's an opportunity to do so and Reddit had a strong year,' the executive told the Journal pointing to a 90% YoY increase in advertising revenue in the quarter ended December.
Why It Matters: Reddit has been in the limelight after r/WallStreetBets, a community of retail investors on the platform, short squeezed stocks of GameStop Corp (NYSE: GME), AMC Entertainment Holdings Inc (NYSE: AMC), Blackberry Ltd (NYSE: redacted, Nokia Oyj (NYSE: redacted) and others.
'We are also readying to double the number of Reddit employees this year; it's surprising not only for the pace of growth but also that such a relatively lean team has been behind one of the most visited websites in the world,' the social media company said in a statement.
Reddit purchased video-based social media platform Dubsmash in December.