Investors are pumping $250 million into Reddit following the role of the social

[Cordillerabit]

In a Series E fundraising round, Reddit has raised $250 million, the company announced Monday night.

According to a blog post, the social media website, which said both new and current investors participated but did not reveal their names, plans to double its headcount with the funds, as well as build its "video, advertising, consumer products" and international efforts.

This means Reddit plans to have a total of 1,400 employees by the end of 2021, according to the Wall Street Journal, and now has a valuation of $6 billion.

Over the past few weeks, the company has made headlines, most notably when its r/WallStreetBets community helped pump GameStop's share price and other securities to triple-digit growth, triggering investigations and Congressional hearings by the Securities and Exchange Commission. Later, this mania spread to Dogecoin and XRP, both of which saw massive run-ups in prices.

"Time and again, alongside the growth and evolution of those communities and the people behind them, we have seen the power of community and connection," Monday's announcement said.

"The blog post didn't mention the GameStop pump, although it was obliquely referenced by a Super Bowl ad bought by the company for Sunday night's game, saying "one thing we learned last week from our communities is that underdogs can accomplish just about anything when they come together around a common idea.

Reddit did not address its current financial situation, but noted in Monday's announcement that it sees over 50 million daily users and said that compared to the last quarter of 2019, its direct advertising revenue increased 90 percent over the past quarter.

 "The blog post said, "We continue to invest in building and improving the ways people connect on Reddit, whether traditionally through text-based discussions or via video or live streaming.

While Monday's announcement did not mention its recent crypto forays, in the hope of "bringing Ethereum to Reddit-scale production," it comes just under two weeks after the company expanded its partnership with the Ethereum Foundation.

Source: Bityard