With the latest funding, Robinhood announced an additional $200 million amid a season of consistent growth for the company.
Robinhood Markets Inc is now at a valuation of $11.2 billion after its latest funding on Monday. The fintech startup said it raised $200 million from an investment firm, D1 Capital Partners. The recent funding marks the company’s third major cash investment in the last four months.
In May, Robinhood’s valuation hit $8.3 billion after it raised $280 million. In addition, the fintech company raised $320 million more, pushing its valuation to $8.6 billion. With the latest funding, Robinhood announced an additional $200 million amid a season of consistent growth for the company. This growth started during the recently-eased lockdown as a large number of younger investors ventured into the stock market. Presently, there are rumors that the company may go public before the end of the year.
Robinhood Valuation Soars
So far, several investors like Sequoia Capital have been financing Robinhood. According to an analysis by Reuters, so far, the U.S.-based fintech company has raised about $1.7 billion. In 2020 alone, Robinhood has raised $800 million in funds. Other investment firms that have funded Robinhood include Ribbit Capital and Index Ventures.
Earlier, in the 11th of August announcement, Robinhood mentioned one of its plans for the rest of the year. The company revealed plans to expand its business, by employing more workers. Explaining further, Robinhood says the aim is to grow the Customer Experience team with hundreds of new employees in Southlake, Texas, and Temple, Arizona.
“With this funding, we’ll continue to invest in improving our core product and customer experience.”
Also, the recent funding is a forerunner to the Robinhood’s Initial Public Offering (IPO). This supports earlier plans by founders Vladimir Tenev and Baiju Bhatt, who have pledged to take the company public.
According to the 17th of August announcement, Robinhood also revealed that a large number of people are learning to invest:
“We’re inspired by the way people are using Robinhood to learn more about the markets. The last several months, in particular, have demonstrated that participation in the markets can be powerful for people. We’re seeing that our customers are using this time to educate and inform themselves.”
In the press release, the company revealed that average unique daily visits to its Learn Resources have jumped over 250% since January. The fintech company also added that there are over 650 articles available to provide basic investment tips for users.
Robinhood Grows Further
Even as many companies suffer losses due to the persisting coronavirus pandemic, Robinhood continues to grow. At the beginning of the year, the company added three million customer accounts. In addition, the fintech company recently said in an email that the daily average revenue trades (DARTs) in the second quarter increased by more than 11% compared to Q1. Also, in June, Robinhood had 4.31 million DARTs with about 129,300,000 trades. The DARTs showed that the company performed better than all the other publicly traded brokers.
Furthermore, there are presently over 20,000,000 subscribers of the Robinhood Snacks weekly newsletter. Also, there are more than 1,900,000 monthly active podcast listeners of Robinhood Snacks.
Tolu is a cryptocurrency and blockchain enthusiast based in Lagos. He likes to demystify crypto stories to the bare basics so that anyone anywhere can understand without too much background knowledge.
When he’s not neck-deep in crypto stories, Tolu enjoys music, loves to sing and is an avid movie lover.
