Reddit Doubles Valuation To $6B As It Raises Money In A 'Good Market'

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 TCEHY, 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 GME, AMC Entertainment Holdings Inc AMC, Blackberry Ltd BB, Nokia Oyj NOK and others.

See Also: Reddit Pays Ode To GameStop 'Underdogs' In 5-Second Super Bowl Ad

“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. Facebook Inc FB and Snap Inc SNAP were also interested in purchasing the short-form video app.