Venture Capital: Robinhood, The ‘Go-To’ Trading App For Millennials, Snags $660M

September 23, 2020 | FinTech, News, Venture Capital
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Robinhood boosted its Series G from $200 million to $660 million.

According to an exclusive report today by Reuters, Robinhood Markets Inc. the trading app so popular with millennials, raised $660 million in its latest Series G funding round.

The trading app previously announced its Series G funding with a $200 million investment by  D1 Capital Partners. According to a company spokeswoman, the company expanded the round to $660 million at a valuation of $11.7 billion.

Andreessen Horowitz, Sequoia, DST Global, Ribbit Capital, 9Yards Capital, and D1 Capital Partners are some of the new and existing investors participating in the funding.

“We’ve raised an additional $460 million in subsequent closings to our Series G to support our core product and customer experience and new offerings like cash management and recurring investments,” the company spokeswoman clarified.

Pandemic triggered growth

Robinhood’s latest valuation is still short of the $14.5 billion valuation struck this week by mobile banking outfit Chime.

Fintechs’ businesses have received a shot in the arm from the digitization spurred by the coronavirus pandemic. Millennials have flocked to the fee-free Robinhood trading app as stock markets rocketed off their pandemic lows. Tech stocks had been especially strong and attracted huge retail interest.

However, the Wall Street Journal reported earlier this month that Robinhood is facing a fraud investigation from the SEC. It related to high-speed trading firms. WSJ said that the trading app could face a fine in excess of $10 million. It failed to report it was sending customers’ orders for execution by these traders and getting paid for this order flow.

In June, a 20-year-old student committed suicide after thinking he had got himself into more than $700,000 worth of debt from trading highly complex options on Robinhood.

With the latest funding, Robinhood has cumulatively raised more than $2 billion.

Related Story: Robinhood, the Fee-Free Trading App, Raises $320M At $8.6B Valuation

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