Despite problems with its infrastructure, Robinhood Markets Inc has been reporting continued success, with the coronavirus pandemic driving millennials to its commission-free trading app. Now, it has been revealed that the fintech startup has increased its latest funding round from investors to $660 million.
According to a report from Reuters, a spokeswoman for the company said on Tuesday that the company has raised an additional $460 million in an extension of its Series G round, which was announced last month.
As Finance Magnates reported, D1 Capital Partners invested $200 million in the trading provider in August of this year. The additional cash injection on top of this brings Robinhood’s valuation up to $11.7 billion, the spokeswoman said.
The cash injection comes from both new and existing investors in Robinhood and includes Andreessen Horowitz, Sequoia, DST Global, Ribbit Capital, 9Yards Capital, and D1 Capital Partners, the news outlet said.
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“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 spokeswoman told Reuters.
The Highs and the Lows of Robinhood
It has been a busy time for Robinhood in recent months. With the onset of the coronavirus pandemic, the commission-free trading provider has seen a big uptick in trading activity and clients.
In fact, the whole industry has witnessed a new wave of traders with many of them first-time traders. However, Robinhood has been credited for helping to make trading popular with millennials.
In June, the trading provider beat its competition in the United States, reporting the strongest daily average revenue trades (DARTs) against its rivals. During June, the trading provider recorded 4.3 million DARTs for the month.
Nonetheless, it has not been all positive for the fintech startup. Since March, the company’s trading platform has suffered a number of outages, and, is reportedly under investigation by the United States’ Securities and Exchange Commission (SEC) over its dealings with high-frequency trading firms (HFTs), according to The Wall Street Journal.