Redditis a social engagement platform consisting of more than 100,000 themed communities visited by roughly 73 million people daily. The company generates revenue through advertising and data licensing. Reddit also plans to monetize gaming and commerce on its platform.
IPO investing is risky due to limited information. There is no analyst coverage, no track record as a public company and minimal financial data to review. According to University of Florida researcher Jay Ritter, new stock issues underperform the broader market in their first three years by more than 18%.
Reddit is a social engagement platform consisting of 100,000-plus themed communities visited by roughly 73 million people daily. The company generates revenue through advertising and data licensing. Going forward, Reddit also plans to monetize gaming and commerce on its platform.
The Reddit IPO will sell 22 million shares of Class A stock under the NYSE ticker RDDT. Roughly 6.7 million of the available shares are coming from selling stockholders, including CEO Steve Huffman and other Reddit employees.
Reddit has also reserved 1.76 million Class A shares for a Directed Share Program. The DSP allows eligible Redditors, board members and friends and family of Reddit employees to buy RDDT stock at the opening price. Highly engaged Redditors were personally invited to participate. Those who didn't receive an invitation had to pre-register for the IPO by March 5.
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Reddit's legacy revenue source, advertising, may be tough to scale. The proliferation of hate speech on the platform plus Reddit's lax approach to moderation may be off-putting to advertisers. Any new controversy associated with Reddit communities could scare big-budget advertisers away.
Reddit has tried to win Redditors over with IPO access through its DSP. Unfortunately, they're not all on board. Concerns have surfaced about steps Reddit will take to realize profitability. One user called the DSP a scam.
Managing the needs of both advertisers and Redditors isn't new for Reddit. But the balancing act becomes far more delicate when shareholder demands come into play. It's too early to know if Reddit's leaders are up to the task.
Most investors should steer clear of Reddit for now. Let the company get through a few earnings cycles first. Then assess Reddit's profit potential and Huffman's ability to lead the company through the inevitable controversies it will face.
990,000 + zero-emission trips
400,000 + App downloads with 4.9\/5 rated service
36 million + zero-emission clean kms
2145+ tonnes of CO2 savedBluSmart is India's first and largest zero emission ride-hailing service and platform with a mission to build mobility smarter, safer, cleaner and more sustainable for a better future.Better customer experience (zero ride denials, zero surge pricing, high quality service, highest standards of safety and sanitisation)Improving the quality of lives of the driver partners (flexible work hours, higher earnings and no stress of asset ownership)Revitalising theair quality in mega cities of India (full stack zero emissions ride-hailing service)Impact. Most preferred ride-hailing service in Delhi NCR. BluSmart is building mobility smarter, cleaner, safer and more sustainable for a better future. The World Business Council for Sustainable Development (WBCSD) published a Case Study on BluSmart's role in addressing the problems of climate change and BluSmart becoming the most preferred mode of transportation for urban commutingInnovation. Patent application filed on \"Systems and methods for allocating vehicles to ride requests\"Service. India's first customer centric full-stack ride-hailing service offering \"Zero Ride Denials, Zero Surge Pricing and Zero Emission Mobility\"EV Ecosystem. BluSmart has the largest all electric ride-hailing fleet and the largest network of fast charging stations in Delhi NCRMarket Opportunity. Ride-hailing market size will grow from current $20bln to $90bln by 2030 across mega cities of IndiaHighest Standards of Safety and Cleanliness. BluSmart electric cars have driver cockpits installed for contactless rides, customers can see the body temperature of the BluSmart driver, customers can preorder a face mask while booking their BluSmart service, customers can see the last time of car sanisation on the BluSmart app, BluSmart electric cars are sanitised after every single ride.Tailwinds. Lower Total Cost of Ownership (TCO advantage of EVs over ICE), falling battery costs, increasing vehicle range on a single charge, EV focussed policy support from State and Central Govt.","insight":"Share Outstanding
Pre-Money Valuation: $225m = \u20b91883.22 crore\r\nPer Share price: \u20b91850 \r\n(Pre fund raise) No. Of shares outstanding: 1.01 crores\r\n
\r\nRecent Fundraise amount: 200 crore @\u20b91850\/share\r\nPreference shares issues(1:1): 10.8 lacs \r\n(Post fund raise)Total No. Of shares outstanding: 1.11 crores
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