The commission-free broker raises $323 million in Series E which it will use for “democratizing finance for all”

The Robinhood valuation hit $7.6 billion. That figure is up more than a third from its 2018 valuation of $5.6 billion.

Investors participating in the latest E series funding round, that raised $323 million, included Ribbit Capital, New Enterprise Associates, Sequoia Capital, and Thrive Capital. DST Global, an existing investor, led the financing round.

Robinhood Valuation keeps rising

Founded in 2013 by Vladimir Tenev and Baiju Bhatt, Robinhood disrupted the cozy share-broking business. The firm did so by introducing commission-free, mobile app-based trading in stocks and ETFs.

As a result, the firm’s business strategy frequently draws questions about the source of Robinhood’s revenue streams. According to company marketing materials, the firm makes money on interest earned on customers’ cash balances and margin lending.

As the firm grows, its founders have hinted that an IPO is possible. To reach that goal Robinhood will need to continue growing its customer base. So far, they have shown progress in reaching that goal. The firm reported a sharp uptick in customers in 2018 from 4 million customers to 6 million.

That said, the firm has struggled with recent rollouts of savings and checkings accounts. Its rival Revolut – which could hit a $10 billion valuation – has entered the brokerage space to target Robinhood.

The company recently hired Scott Racusin, the former CEO of Wedbush Bank and Merchants Bank of California. It then applied in April for regulatory approval to create a national bank. So far, regulators and industry watchdogs have been skeptical about the firm’s checking account strategy.