Reddit recently raised more than $250 million, raising the social media site’s valuation to a staggering $6 billion, according to Variety. The funding round was led by venture capital firm Vy Capital. Reddit’s valuation has now doubled as it was valued at $3 billion a year ago.
The company plans to invest in international expansion, video, advertising, and consumer products, according to The Verge. Reddit purchased Dubsmash last year and has plans to incorporate its tools into its platform.
“We decided that now was the right opportunity to make strategic investments in Reddit including video, advertising, consumer products, and expanding into international markets,” company officials said in an online blog post.
Reddit has more than 50 million daily users, according to CNBC. Advertising revenue climbed 90 percent in the last quarter over a year ago.
As a result of the new valuation, Reddit is now planning to double its workforce later this year to 1,400 employees, according to The Verge. The company currently has 700 employees, with 600 of them based nationwide in the U.S.
Reddit also made headlines in recent weeks because of the r/WallStreetBets subreddit, which sparked a trading mania. Users promoted stocks eyed by short sellers, resulting in hysteria and skyrocketing stocks in GameStop, AMC, and more.
