The company said it had already raised USD 410 million since the start of the year in its second funding round from Fidelity, when small-time traders gathered on its network in their battle against the Wall Street institutions. The traders initially had focused on Reddit's WallStreetBets forum but now has spread across discussion boards, have changed how Wall Street analysts operate.
To which, it had caused major losses for some funds and powering huge gains in the shares of companies including GameStop and AMC. The company based in San Francisco was founded by Chief Executive Steve Huffman, entrepreneur Alexis Ohanian and the late Internet activist Aaron Swartz in 2005.
While Reddit has been a well-known internet name for years and has attract millions of experts and enthusiasts to its niche discussion groups. The company has trailed behind other giant social media sites in terms of its development as a business or start ups.
Although a massive sum, the USD 10 billion valuation pales in comparison to Twitter's USD 52 billion or the USD 1 trillion valuation of Facebook, both founded around the same time as Reddit. As of January, Reddit had more than 52 million daily active users and over a 100 thousand communities.
The company topped USD 100 million fir the first time in advertising revenue for second quarter, an almost threefold jump from the same quater last year. The company’s investors include venture capital firm Andreessen Horowitz, funds such as Tencent Holdings,rap superstar Snoop Dogg, and Sequoia Capital.