As Reddit secures funding to continue growth plans, its valuation has increased to $10 billion, giving the company the capital it requires to look forward to its next stage of growth.
The tech giant has raised an additional $410 million in funding, with the final round expected to grow up to $700 million.
Although Reddit still lags behind other social apps, the valuation highlights the rising potential of the platform. As the company continues to make forward strides in boosting its potential over time, it will continually find news ways to foster community.
As explained by Reddit:
“We’re making strategic investments to grow Reddit and our business, including expanding internationally, innovating new ways to foster community, and bolstering our advertising offerings and capabilities. We’ve been making a great deal of progress on all fronts – from hiring our first chief financial officer and building out a comprehensive finance function, to expanding internationally in the UK, Canada, Australia, and more countries to come.”
Reddit generates most of its revenue from advertising on the site. This year, Reddit has registered its first $100 million advertising revenue quarter – representing a 192% increase in comparison to the same period last year. With roughly 52 million daily users, its clear that Reddit is set to make waves and stiffen the competition amongst already established social platforms.