Robinhood, the stock and crypto trading app, has raised $200 million in a new funding round, as the platform is now reportedly valued at $11.2 billion, according to D1 Capital Partners.
It has been reported that the trading app said the investment would be used to improve its “core product and customer experience.”
However, Robinhood recently raised $320 in a July funding round at an $8.6 billion valuation with investors including TSG Consumer Partners and IVP, and $280 million in a Series F funding round at an $8.3 billion valuation in May.
It has been analyzed that the “customer service” which Robinhood said it would improve may be referring to the multiple outages the platform has suffered this year.
Despite reports of multiples outages in 2020, Robinhood is still popular among crypto traders and investors https://t.co/2enSL9ngi1 — Cointelegraph (@Cointelegraph) August 18, 2020
In April, Robinhood sought to raise the additional funds partly in response to the platform going down three times during peak trading in March.
Many traders reported heavy losses being unable to access their accounts and demanded compensation.
<img width="1024" height="522" src="https://www.cryptonewspoint.com/wp-content/uploads/2020/08/Robinhood-Raises-200-Million-In-A-New-Funding-Round1-1024x522.png" alt="" class="wp-image-21791 lazyload" />
Image: Coverager
The platform is still popular among younger traders for its “gamified” user-friendly interface, gaining 3 million new accounts in Q1 2020.
Despite securing $280 million in a Series F round led by venture capital firm Sequoia, the trading app once again temporarily went down on June 18 with no warning.
Thus, Robinhood has postponed its launch into the United Kingdom “indefinitely” and has made no announcements regarding its expansion into other global markets.
Source: Cointelegraph | Image: The New York Times