Reddit announced that it will raise up to 700 Mn in Series F funding, and make strategic investments, expand internationally and brace advertising offerings and capabilities.
The latest round of funding for Reddit was led by Fidelity Management and Research Company LLC. The post-money valuation at 10 Bn USD includes the Series F round of funding and existing investors.
The platform’s current objective would be supported by building operational structures that can support international expansion. Reddit will be first expanding to UK, Canada, Australia, and to be extended to more countries soon.
Scaling up Reddit also includes growing the Reddit team, initiated with the hiring of Reddit’s first Chief Financial Officer, and laying out a comprehensive finance function.
In May 2021, Reddit announced that they entered into an Enterprise Partnership agreement with Omnicom Media Group to enable a range of strategic and commercial benefits from the media spends on Reddit.
The partnership is a part of the efforts to scale the advertising business on Reddit, and the partnership with Omnicom Media Group will result in the clients of OMG agencies receiving additional perks into tapping the 52 Mn daily active users.
Furthermore, in December 2020, Reddit acquired the pioneer short-form video platform, Dubsmash. With the acquisition, Reddit users now have access to Dubsmash’s innovative video creation tools. The mission of Dubsmash of giving a platform to under-represented creators was aligned with that of Reddit, who wants to cater to their growing community with tools to find, create, and interact through video with dynamic content.
On the performance front, Reddit marked its first 100 Mn USD advertising revenue quarter (Q2 2021), representing a 192% increase compared to the same period last year.