Substack serves as a neutral platform for writers including journalists while also paying some of them for content published on a regular basis.
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News website Axios, which first
reported about the development, said the round valued Substack at about $650 million.
Substack said it would use the fresh capital to help fund its financing program for writers, growing a team of writers and bolster its subscription-based publishing model.
More writers and journalists are lately getting on the email newsletter bandwagon preferring the editorial freedom intrinsic to the medium, which also allows them to move away from ad-reliant business models that have been on a steady decline.
Competition is heating up in the space between firms like Substack, Medium, and Twitter Inc’s recently acquired Revue, which lets content creators try out a mix of paid and free email newsletters to reach potential readers.