In a blog post, Robinhood said the funds would be used to hire new employees, create more products, and improve its operations.
California-based financial service firm Robinhood Markets Inc announced on Monday it had made $320 million in its most recent funding round. This comes as more first-time investors are said to sign onto the app to trade stocks.
It’s most recent $320 million income alongside $280 million the firm raised in May series F funding lead by Sequoia sums its latest funding round to $600 million. The startup is now valued at $8.6 billion.
Owing to these, alongside the startups rising price tag, the California-based firm marks as one of the most valuable startups in America. Reportedly, with its small staff strength dominated by inexperienced traders, they have become an unpredictable force on Wall Street.
Company Making Giant Strides in Stock market
The firm stated in a blog post in May that it signed up over three million new accounts between January and May as half of the new clients were first-time investors.
The firm’s announcing its most recent amount made in a funding round comes in the wake of criticism that Robinhood allows people to make risky bets on the market. Amidst that, only last month, the startup was at the epicenter of an unfortunate event where its user had committed suicide.
The 20-year-old boy killed himself after seeing a deficit balance of over $700,000. Robinhood, however, said they would change options trading rules to offer more education and donated $250,000 to the American Foundation for Suicide Prevention.
Robinhood Funding Allocation
Robinhood, before the funding round, already made plans on how income made during the funding round would be spent. Sequoia Capital, an existing investor, that led Robinhood’s last funding round, followed by Ribbit Capital.
Sequoia Capital partner Andrew Reed lauded the firm in a statement saying that they have made financial markets accessible to the masses, thereby changing the decade-old brokerage industry. Robinhood’s $320M income comes from investors, including IVP and private equity firm TSG Consumer Partners.
In a blog post, Robinhood said the funds would be used to hire new employees, create more products, and improve its operations generally.
The Californian startup all round is said to be having a good business year as the firm continues to work to improve its platform.
Muhaimin is a journalist, a fintech and crypto enthusiast who is passionate about its development in Africa and across the globe. Muhaimin derives pleasure in reporting and analysing happenings in the crypto world and a believer in Blockchain technology.