Reddit has raised $410 million and plans to attract additional funds from existing investors Fidelity Management, Research Company and others and close the round raising a total of $700 million, the company's CEO Steve Huffman said.
Reddit raised $250 million in February and reached a valuation of $6 billion. In six months, the company's valuation has risen to $10 billion. Reddit did not intend to attract investment, however, "Fidelity made us an offer that we couldn’t refuse," Huffman said.
The company plans to use the investments to revamp its product to make it easier for beginners to study and understand how the site works, develop its video products as well as an advertising platform for customers. Reddit also wants to start expanding internationally. Most of the site is US-focused, "something he hopes to change."
The additional funds will give the company more time to prepare for its IPO. Huffman said:
"We are still planning on going public, but we don’t have a firm timeline there yet."
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