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Reddit, the self-proclaimed front page of the internet, has raised $410M in fresh funding to reach decacorn status.
The funding round was led by Fidelity Investments and added $4B to the company’s valuation, which was $6B just six months ago.
The $6B valuation came after raising $250M led by Vy Capital with participation from Andreessen Horowitz, Sequoia Capital, and Tencent Holdings.
The newest round was not planned but rather prompted by Fidelity making an offer the company "couldn’t refuse," said Reddit CEO and co-founder Steve Huffman.
The company expects its previous investors to participate in the new funding, which could bring the total sum raised up to $700M. At the time of writing, Reddit has raised just under $920M to date.
Huffman also noted that the company is still planning on going public, which he claims all good companies should do when they can. He declined to name a timeline.
Reddit broke the $100M mark for quarterly revenue in Q2’21, up 192% YoY, driven by its advertising income.
Its website claimed some 50 million daily visitors and 100,000 active subreddits.
The growth could be attributed to the company abandoning its laissez-faire approach to racist, misogynist, and otherwise controversial content. It now actively polices its platform for groups uploading hateful posts.
