Robinhood raised a funding of $200m, buoying their valuation to $11.2b.
American financial services company Robinhood, which offers a free app for traders, has surpassed other traditional stockbroker services in terms of value, per CNN.
On Monday, the seven-year old online trading firm said that they had closed $200 million from D1 Capital Partners for Series G funding. This made Robinhood’s valuation reach $11.2 billion, which is a $2.6 billion increase. In May, they were valued at $8.6 billion when they raised a different funding of $280 million.
“We believe investing at its core is a democratic concept,” the company stated. “With our latest round of funding, we’ll continue empowering people in their financial lives and enabling a more democratic financial system.”
The company is not yet public, but it could be soon, according to several news reports. Robinhood changed the game in the stockbroker business, and it is hugely favored by millennials. In addition, Robinhood is one of the exceptions among different businesses in the pandemic. eToro crypto broker is among its competitors in the market.
When the year began, Robinhood said they added 3 million more customers to their services. There have been 4.3 million daily average revenue trades (DARTs), according to the company in June. The figure is twice of the previous three-month quarter. This is even better than all of the publicly traded brokers, per CNBC. Furthermore, they also saw a boost in revenue with their ballooning trading.
“We’ve seen evidence that people are taking time to learn more about the markets,” the company relayed through the announcement, saying average unique daily visits to their resource materials on “Learn” saw a 250 percent boost since January.
Sizing Up the Workforce
The company had stated through a press release that they will be increasing their workforce with this new funding. “Robinhood has empowered millions of people to invest and participate in the US financial system. To ensure we meet our customer’s needs, we’re hiring hundreds of new registered financial services representatives this year in Southlake, Texas, and Tempe, Arizona.”
They further said that they are also scaling up employee numbers in all of their locations in order to “reduce response times, build more self-service tools, and enhance our informational and educational tools.”