The popular stock and cryptocurrency investing app worth $11.2 billion after the last funding round.
Robinhood crypto and stocks trading app announced this Monday that it has successfully raised $200 million from a Series G funding round. The investment from New York-based investment firm D1 Capital Partners boosts the company’s value to $11.2 billion.
Robinhood is one of the best performing fintech start-ups lately, valued at $8.6 billion in its second major funding round in July. The star of Silicon Valley has been raising solid amounts from high-profile investors like Sequoia Capital, Ribbit Capital, Kleiner Perkins, and GV, formerly known as Google Ventures.
Launched 7 years ago, the Robinhood crypto and trading app challenged the trading industry by introducing commission fee-free trades on a simple and slick mobile interface.
The application with 10 million users became extremely popular during the quarantine when thousands of new and mostly millennial users started exploring day trading techniques via the Robinhood app. Furthermore, lots of them succeeded and even beat up the professionals in terms of profit. Despite that, the number of novice traders reached the critical mass, the big enough to make an impact on several market segments.
Preparation for IPO?
As stated in the announcement of the crypto and stock trading app, with the latest funding Robinhood continues to invest in product and customer experience improvement. According to the post, Robinhood records 250% growth in daily visits to its educational resources. Moreover, the company has over 2 million monthly podcast listeners and over 20 million of weekly-newsletter subscribers.
The app has been blamed for going down several times during the trading boom after the mid-March market crash, causing high losses due to the inability for users to access their accounts.
Meanwhile, the Reuters reports that the wide audience sees the latest funding round as a “precursor to an Initial Public Offering (IPO)”. Rumors of Robinhood planning to go public have been circulating since 2018 already, when the start-up hired Amazon’s high-profile employee as its financial executive, suggesting that such kinds of movements are done before filing the application for IPO.
According to Crunchbase, with the latest $200 million funding, Robinhood has raised a total of $1.7 billion. Heavily funded over 14 rounds in total, Robinhood crypto and stock trading app have been backed by 52 investors, including Andreessen Horowitz, NEA, or Ribbit Capital.