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Reddit, touches $10 billion valuation, to strengthen international presence, CEO says

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Reddit, the U.S. based social news aggregation, web content rating, and discussion website has announced that it will raise up to $700 million in a Series F fundraising round led by Fidelity Management, giving it a valuation of over $10 billion which is more than triple what it was worth that in Feb 2019.

 The company further announced that it had already raised $410 million from Fidelity in its second funding round since the start of the year when small-time traders gathered on its platform in their battle against Wall Street institutions.

Reddit, which was founded in 2005, had 52 million daily active users and 100,000 subreddit communities as of January, according to media reports. The site’s infamous WallStreetBets forum now has more than 10.7 million participants.

On Friday, Reddit’s CEO said that it will use its new funding to further its international presence and explore more content types.

“First order of business makes Reddit awesome. Make Reddit faster, more relevant, help it work for more people,” Steve Huffman, CEO said about the company’s plans. “And then we look to the future, so internationalization is a big effort of ours. Video will be another big effort of ours, so just the same strategy. Just keep moving ahead.”

In February, shortly after the Reddit-fueled GameStop saga, the social media site completed a capital raise that doubled its valuation to USD 6 Billion. Reddit also reached $100 million in advertising revenue for the first time in the second quarter of 2021, which is a 192% increase compared with the same period last year.

However, the latest valuation appears small next to Twitter’s $51.7 billion valuation and 206 million monetizable daily active users as per reports in its second quarter, and Facebook’s $1 trillion dollar valuation, as of Friday’s market close, and 1.9 billion daily active users in June.

Both of those tech giants have been around for roughly as long as Reddit has.

Reddit’s unique ability to host users who pioneer a new content type, like the meme, or drive up the popularity of certain kinds of content is what makes the company stand out, Huffman said. “I think that’s what makes Reddit really interesting is that our users do things that we or nobody else would ever actually predict, and I think that’s the fun of it,” he added.

The site’s meme stock trading activity has previously led to Wall Street chaos which led the U.S. Securities and Exchange Commission to monitor the volatility of some stocks’ trading prices more closely.

According to reliable sources, the company continues to build and sanitize its business, removing racist, misogynist, and otherwise controversial communities, as it prepares to go public at some point in the future.

“We are still planning on going public, but we don’t have a firm timeline there yet,”  Huffman, was quoted in a media interview.

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