All you need to know about Reddit IPO?
Ground Report | New Delhi: All you need to know about Reddit IPO; The popular internet forum Reddit is preparing to go public after submitting a confidential Public Offering of Sale (IPO) to US regulators. The platform has more than 52 million monthly users and already has more than 100,000 communities or subreddits; These are forums in which users meet to discuss a topic.
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All you need to know about Reddit IPO
Reddit was founded in 2005 by Steve Huffman and entrepreneur Alexis Ohanian. This year it has been known for being the place where the GameStop share rise was conceived.
It was the meme investing phenomenon that fueled one of the site’s subreddits: Wall Street Bets. As a result of that phenomenon, Reddit has enjoyed explosive growth; this to the point that in the second quarter of their fiscal year they announced advertising revenues of more than $ 100 million.
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The request forwarded to the US regulator, the SEC, is confidential; That is why the number of shares it will offer or their price range has not been disclosed. But it is a studied measure, taking into account that the company signed Drew Vollero as its chief financial officer in March of this year.
The Reddit IPO would also occur in a year in which IPOs has broken records after companies such as Robinhood or Coinbase have also jumped onto the floor in these months.
How much is Reddit worth?
Reddit was valued at $ 10 billion in a private fundraising round in August 2021, but at the time of its initial public offering, the online message board company is aiming for a valuation of more than $ 15 billion.
How does Reddit make money?
Reddit makes money from advertising on its site. It reported that in the second quarter of 2021, it made $ 100 million in advertising revenue, three times the amount it made in the second quarter of 2020.
For users who do not want ads in their feeds, there is a ‘premium membership’ available, which grants an ad-free experience, as well as full access to the r / lounge, 700 free monthly coins, and other benefits. Membership costs $ 5.99 per month or $ 49.99 per year.
Reddit also makes money through Reddit Coins, which are virtual goods that Reddit users can buy in bundles and gift to other Reddit users to reward them for their contributions and good content. Coin packs cost between $ 1.99 and $ 199.99.
Other benefits for users who have Reddit Coins include access to the r / lounge. Which is an exclusive subreddit group for Premium members only. Reddit has also raised capital through eight fundraising rounds, generating a total of $ 919 million from 27 different institutional investors.
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