Robinhood, a popular stock and cryptocurrency trading app, has surpassed its financing goals by raising $280 million Series F funding at an $8.3 billion valuation.
On May 4, it has been reported that the Series F was led by Sequoia, the venture capital firm, alongside existing and new investors that included NEA, Ribbit Capital, 9Yards Capital, and Unusual Ventures.
In April, Robinhood had been seeking to raise $250 million at an approximate valuation of $8 billion.
However, besides traditional equities and options, the app’s commission-free crypto trading service supports major coins as well as smaller-cap cryptocurrencies such as:
Bitcoin (BTC),
Ether (ETH),
Bitcoin Cash (BCH),
Litecoin (LTC),
Ethereum Classic (ETC), and
Dogecoin (DOGE)
It has been analyzed that Robinhood’s raise comes shortly after a series of high-profile outages on its platform this March, one of which reportedly made Robinhood traders miss out on the biggest one-day point gain in the Dow Jones’ history.
The Series F was led by venture capital firm Sequoia, alongside existing and new investors that included NEA, Ribbit Capital, 9Yards Capital and Unusual Ventures https://t.co/aPPfDAJEcA — Cointelegraph (@Cointelegraph) May 5, 2020
Nonetheless, the app has seen record revenue growth during the COVID-19 pandemic by rising from $20 million in March 2019 to $60 million in March 2020.
In its Series F announcement yesterday (May 4), Robinhood said:
“It was humbled that people are turning to Robinhood” amid “challenging times and market volatility.”
So far in 2020, the app has reportedly added over 3 million funded accounts; half of the new users this year are apparently first-time investors.
As per the report, at the end of March, Robinhood confirmed that it had been contacting users affected by the month’s outages, pledging to reimburse them in dollars at a sum to be determined on a case-by-case basis.
Thus, the company faces at least one federal class lawsuit filed on behalf of several traders after an outage at the start of March.
Source: Cointelegraph | Image: Pixabay