Reddit is reportedly cashing in millions of dollars through series E funding. The company plans to allocate the fundings into giving a better service and experience for its users. The acquisition of Dubsmash will also play a big part in the allocation of the funding.
Reddit managed to raise $250 million through series E funding
Led by Vy Capital, Reddit reportedly has raised $250 million from series E funding. Reddit’s valuation is now twice bigger than it was in February 2019. Noted from Reuters, Reddit’s value jumped around 90% jump from $3 billion to $6 billion.
Reddit to allocate fundings for giving a better service
Reddit will likely expand its services to attract more users. Following the recent acquisition of Dubsmash, Reddit did hint on its plan to challenge TikTok in video contents creation. Along with the new expansion, Reddit expects to bring in more users and appeal advertisers to Reddit, especially with the rise of interest in video advertising. Accordingly, Reddit is looking to double its team over the course of this year with new hires, Tech Crunch quotes.
Reddit confirmed this speculation. Through its official blog, Reddit stated, “We decided that now was the right opportunity to make strategic investments in Reddit including video, advertising, consumer products, and expanding into international markets.”
Meanwhile, Reddit’s problem in controlling hate speech and discrimination in its communities remains unsolved. Earlier this year, the media reported upon Reddit’s success in banning controversial subreddit r/donaldtrump. Reddit banned the subreddit community due to “repeat´d policy violations” surrounding the attempted insurrection at the US Capitol by a mob of domestic terrorists, Tech Crunch notes. This seems to be another point to note for Reddit in the future.