Reddit Plans 2023 IPO Launch, According to Report

Reddit Plans 2023 IPO Launch, According to Report

Social media giant, Reddit, is reportedly preparing for an initial public offering (IPO) in the second half of the year, according to a recent report by The Information. Despite the challenging market conditions and a slowdown in IPO activity, Reddit is said to be keeping its paperwork up to date and is waiting for better market conditions before making its debut.

In December 2021, Reddit announced that it had confidentially filed for a proposed IPO with the US Securities and Exchange Commission, with an expected valuation of more than $15 billion. This is a significant increase from its previous valuation of $10 billion during a private fundraising round.

Founded in 2005 by Steve Huffman and Alexis Ohanian, Reddit boasts more than 50 million daily active users and over 100,000 communities. Its message boards, including the popular WallStreetBets thread, have been instrumental in the highly publicized battle between small-time traders and big hedge funds, driving big gains in highly shorted shares of companies such as GameStop and AMC.

Major investors in Reddit include Fidelity Investments, Andreessen Horowitz, Sequoia Capital, and Tencent Holdings.

Another highly anticipated IPO for the year is the grocery delivery service, Instacart Inc. Although the company has not yet disclosed the size of its IPO, pricing range, or when it expects to go public, it announced in May 2022 that it had confidentially filed for an IPO with US securities regulators.

While Instacart was valued at $39 billion in 2021 during the pandemic-induced surge in doorstep deliveries, it cut its internal valuation to $10 billion in December 2022, reflecting the effects of public market volatility on high-flying private companies.

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