Reddit is planning to go public and seeking to hire advisers for its U.S. IPO, sources say
Early last month, Reddit raised $700 million in a fundraising round doubling the company’s valuation to $10 billion in just 6 months. There are now reports that the popular aggregation site with billions in monthly traffic might be planning to go public.
Reddit is reportedly seeking to hire investment bankers and lawyers for an initial public offering (IPO) in New York, according to an exclusive report from Reuters, citing two people familiar with the matter said. One of the sources told Reuters that Reddit hopes it will be valued at more than $15 billion by the time the IPO takes place early next year.
As we reported last month, Reddit was valued at $10 billion after raising $700 million in a funding round led by Fidelity Management. Reddit’s other backers include venture capital firm Andreessen Horowitz, funds such as Sequoia Capital, Tencent Holdings, and rap superstar Snoop Dogg. In February 2019, Reddit was valued at $3 billion following a funding round. Then exactly a year later, Reddit raised $250 million in new funding, doubling its valuation again to $6 billion.
Meanwhile, the sources cautioned that the timing and size of the IPO were subject to market conditions and asked not to be identified because the preparations are confidential. A Reddit spokesperson declined to comment.
According to SimilarWeb, Reddit is number 20 most visited webstite in the world. The social platform has 1.75 billion unique monthly users, higher than the Microsoft Bing search engine with only 1 billion monthly unique users.
That’s not all. Reddit is also the operator of online message boards that became the go-to destination for day traders chasing this year’s frenzy for so-called meme stocks. The platform raked in $100 million in advertising revenue for the first time in the second quarter, almost a threefold jump from the same period last year.
Reddit has been growing exponentially since its inception 16 years ago. Today, Reddit has almost 2 billion in monthly traffic. The social news aggregation, web content rating, and discussion website has now grown to become the 18th-most-visited website in the world and 7th most-visited website in the U.S., according to Alexa Internet data as of February 2021.
Co-founded in 2005 by Alexis Ohanian, Reddit is a social news aggregation, web content rating, and discussion platform. As of October 2020, Reddit ranks as the 17th-most-visited website in the world and the 7th most-visited website in the US, according to Alexa Internet.