The quickly growing stock-trading app, Robinhood, has closed a new round of capital. Today, it announced a $200 million Series G funding led by D1 Capital Partners and putting its valuation at $11.2 billion.
It stated that the new cash injection would go towards “improving our core product and customer experience.” Additionally, Robinhood intends to leverage the add-on to accelerate the build-out of operations, including hiring more employees in its offices.
Robinhood, which first shook up the brokerage space in 2013 with no-free trading, raised capital several times in 2020, including a $320 million round last month that valued the firm at around $8.6 billion. Earlier in May, the popular app had landed an $8.3 billion valuation after it raised $280 million in Series F funding. The round was led by Sequoia Capital, one of Silicon Valley’s biggest venture investors, and was joined by returning investors, including NEA, Ribbit Capital, 9Yards Capital, and Unusual Ventures.
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Earlier this month, the stock-trading app said it plans to make ‘hundreds of additional hires’ to fill its offices in Southlake, Texas, and Tempe, Arizona, as a surge in retail investing drove millions to its platform. Previously, it announced in October 2019 it is looking to fill a total of 800 full-time positions nationwide. Though Covid-19 has not impacted upon its 2020’s hiring plans as its traders have kept their foot on the gas, making a number of trades that were higher than all of its publicly traded rivals.
Robinhood, which has more than 13 million accounts, has added 3 million new customer accounts between the start of the year and early May. The Silicon Valley startup, mostly used by millennials to trade stocks and cryptocurrency, said in December 2019 it had hit the 10 million account milestone, up from its 1 million subscribers in 2016 and 6 million accounts in 2018.
The growth came despite significant outages that plagued the fintech company since the beginning of the year.