Robinhood Raises Cool $660M in Extended Funding Round
Following a retail bonanza this summer, trading app Robinhood says it has raised $660 million in an extended Series G round.
Unicorn trading app Robinhood has taken over $600 million in an extended funding round as it rides the summer's retail trading wave.
- Reuters reported Wednesday that Robinhood had raised a total of $660 million in its latest Series G round.
- The trading app, which lists some cryptocurrencies, took commits from existing investors including Andreessen Horowitz, Sequoia, Ribbit Capital, 9Yards Capital, and D1 Capital Partners.
- The round had originally raised $460 million, but was extended when D1 Capital offered to invest a further $200 million.
- That last-minute commit has taken Robinhood's valuation upwards of $11.7 billion, a spokesperson told Reuters.
- The funding will be used to support core products and roll out a cash management and recurring investment feature.
- Robinhood said it will also improve its customer experience after a year with a number of outages – the latest being earlier this month – that have rendered the app temporarily unusable.
- Retail-orientated platforms like Robinhood have enjoyed a surge of usage during the pandemic as people working from home have piled into stocks betting on a quick market recovery.
- Some have accused Robinhood of failing to protect its customers by offering complex products to amateurs.
- A 20-year-old student committed suicide in June after thinking he had got himself into more than $700,000 worth of debt from trading sophisticated options.
- It later transpired the negative balance was a temporary blip before the contract executed.
- Still, Wednesday's raise shows finance apps are thriving as the next generation of unicorns.
- Earlier this year, digital bank Revolut raised $500 million in a Series D, taking its total valuation up to $5.5 billion.
The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.
Learn more about Consensus 2024, CoinDesk’s longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.