Several retail traders have already been flocking to trade stocks & cryptocurrencies on the renowned application ‘Robinhood’ – as per the company’s recent Series G funding round.
Earlier on 23rd Sept., a spokeswoman for Robinhood Markets Inc. revealed that fintech has increased its latest funding round to $660 Mln, at a firms valuation of $11.7 Bln.
The fresh funding is an extension of a Series G round primarily announced earlier in August when D1 Capital Partners invested $200 Mln in Robinhood.
New & stalwart investors within the application have reportedly been involved within the extension, among them Andreessen Horowitz, Sequoia, DST Global, Ribbit Capital as well as 9Yards Capital.
The spokeswoman also added that the capital would be used “to support our core product & user experience and new offerings like cash management and recurring investments.”
Reuters’ calculations using PitchBook data estimate that the Robinhood app now has raised roughly $1.25 Bln from investors & secured a complete sum of capital in more than $2 Bln so far.
While locked-in traders might also be feeding demand for the app’s services & raising investor confidence, the ride in recent months hasn’t always been smooth.
In line with a recent official report earlier in April, Robinhood was thought to be seeking to boost the extra capital in response to the platform’s stresses in March, when it crashed 3 times within the peak trading. Many traders reported heavy losses, having been unable to access their accounts & even demanded compensation.
Robinhood began compensating a number of the traders affected within the March disruptions, though the firm declined to reveal what percentage users were affected.