Vimeo raises $300 mn and the valuation hits to $6 bn

The online video platform Vimeo on Monday raised $300 million in equity funding, just a month after the parent company approved a plan to spin off the unit.

Vimeo's platform, which provides video creation, hosting and marketing tools to professionals and businesses, has spiked during the pandemic as more people shifted to working and learning remotely.

Asset management firm T. Rowe Price Group Inc and Oberndorf Enterprises LLC, a financial services firm, provided the funding in two tranches and the second tranche of $100 million took Vimeo took its post-money valuation to $6 billion.

The new investment comes after Vimeo raised $150 million from Thrive Capital and Singapore's sovereign wealth fund, GIC, at a $2.75 billion valuation in November.

Viemo has recorded a 57% year-on-year jump in revenue in December and claims over 200 million users globally with 1.5 million paying subscribers.