Reddit raises $250 million at $6 billion valuation

Reddit said Monday that it raised more than $250 million in Series E funding from existing and new investors. Sources say the company raised the new funding at a $6 billion pre-money valuation.

Why it matters: The company has doubled its valuation since its last funding round of $300 million at a $3 billion valuation in 2019.

Be smart: It's a great time for Reddit to raise money. The company is experiencing record downloads and traffic amid the populist revolution on Wall Street that was seeded by retail investors on Reddit.

• In January, Reddit’s mobile app saw 6.6 million installs globally, up 43% month-over-month from about 4.6 million in December, per Sensor Tower — it's best month ever.
• The company said in December they have 52 million daily active users.

Details: In a statement, the company said it will use the funds to make more strategic investments in Reddit "including video, advertising, consumer products, and expanding into international markets."

• In December, Reddit acquired Dubsmash, the short-form video app akin to TikTok.

Go deeper:

• How Reddit explains the GameStop saga
• Reddit traders' real-world positive consequences
• SEC says it will "closely review" restrictions on Reddit-fueled stocks
• The unprecedented stock market craziness, in one chart
• Wall Street's own populist revolt