Reddit — the front page of the internet as they call it — has confidentially filed for an IPO in the US. The news came in via an official announcement from the company. While there is no official information on the decided share price range and the subsequent valuation, Reuters reports that Reddit could value itself around the $15 Billion mark. The tech company recently raised a $700Mn round, at a speculated $10Bn valuation.
In an announcement posted on its official blog today, the company said, “Reddit, Inc. today announced that it has confidentially submitted a draft registration statement on Form S-1 with the Securities and Exchange Commission (the ”SEC”) relating to the proposed initial public offering of its common stock. The number of shares to be offered and the price range for the proposed offering have not yet been determined.”
It will be an understatement to say how popular Reddit is, as a community. The platform, despite everything going on around the internet social media these days, has maintained some form of moderation for genuine conversations to happen. Not that unwanted elements haven’t come to reddit, but still, the platform continues to be a place where users are having conversations. That is largely because of reddit’s unique self-moderation model.
Backed by Sequoia Capital and China’s Tencent Holdings, the company claimed to have reached $100 million in advertising revenue in the second quarter of the year, a year-over-year increase of 192%. As of January 2021, Reddit claims over 52 million daily active users and over 1,00,000 communities and has expanded in the UK, Australia, and Canada.