Covid-19 has resulted in terrible aftermath for traditional stock trading. However, things have been going great for the fintech app Robinhood. The company managed to raise $460 million with its latest extension of the Series G round. According to a company spokeswoman, with Series G’s release, its funding round rocketed to $660 million. Consequently, Robinhood’s current valuation stands at $11.7 billion.
All of the newly raised funds come from subsequent closings of the same series. Robinhood will use the funds to support its core products and launch new services like cash management and recurring investments.
In August, the Series G round raised $200 million with investments by D1 Capital Partners, earning Robinhood an $11.2 billion valuation. The newest funding round attracted investments from new and existing investors. Andreessen Horowitz LLC, Sequoia, DST Global, Ribbit Capital, and 9Yards Capital are, to name a few.
Fintech services this year are experiencing a significant breakthrough in the stock exchange industry. Hence, Robinhood reached a peak in total funds of $1.25 billion. According to Reuters’ collected data, the company’s total capital is over $2 billion.
However, back in March, Robinhood experienced an outage on the same day the US stock market reached $1.1 trillion. Therefore, it became very suspicious in investors’ eyes and quickly became a controversial topic.
Robinhood is a fintech company founded in 2013 and has changed the lives of many shareholders since then. It enables its customers to invest in stocks, ETFs, and trade cryptocurrencies through their mobile app or website. All of its services are online and charge-free. Robinhood is a FINRA regulated broker-dealer. The company is headquartered IN Menlo Park, California. It currently employees nearly 1,300 people.
Although it’s portrayed as a secure app, some people reportedly lost hundreds of thousands of dollars on it. Thus, some of its customers launched lawsuits against the firm in Florida, California, and Illinois. However, the latest financial results reveal that the company is going strong as it still has the trust of investors.