- Investing app Robinhood simply introduced a $280 million Sequence F at a $8.three billion valuation.
- Earlier investor Sequoia Capital led the spherical, with taking part from NEA, Ribbit Capital, 9Yards Capital, and Uncommon Ventures.
- Robinhood has added three million funded accounts because the begin of the 12 months.
Buyers proceed to pour cash at rising valuations into Robinhood regardless of the favored investing app going through a number of outages on a number of the most unstable buying and selling days in market historical past earlier this 12 months.
The fintech nabbed $280 million in Sequence F funding at an $8.three billion valuation in a spherical led by earlier investor Sequoia Capital. NEA, Ribbit Capital, 9Yards Capital, and Uncommon Ventures additionally participated within the spherical.
Robinhood’s most up-to-date spherical comes after a $323 million Sequence E in July 2019 at a $7.6 billion valuation.
In a blog post in regards to the information, Robinhood introduced it had added three million funded accounts because the begin of the 12 months.
“Robinhood has made the monetary markets accessible to the lots, and in flip, revolutionized the decades-old brokerage trade,” mentioned Andrew Reed, accomplice at Sequoia, in an announcement. “We’re excited to additional our relationship with Robinhood, which we consider is at first of its alternative.”
The expansion got here regardless of vital outages that plagued the fintech in early March. The app was down for consecutive days in the course of the first week of March because the markets have been rocked with volatility. In a word posted on its blog, Robinhood’s cofounders, cited “stress to its infrastructure” from an “unprecedented load.”
In an interview with Fortune relating to the increase, Vlad Tenev, co-CEO and cofounder, described the outages as a “curveball.”
As for the brand new funding, Tenev earmarked it for additional progress.
“The aim of the capital increase is to allow us to have flexibility and be strategic, and proceed to put money into the platform,” Tenev told Fortune. “We envision that over the following few years, Robinhood will broaden globally and proceed rolling out extra merchandise.”
The most recent spherical is one more instance of Robinhood to proceed to boost capital regardless of slipups.
In December 2018 the startup quickly backtracked from an announcement it made for a deliberate cash-management product after saying it could be SIPC insured regardless of not checking with the group forward of time. That very same month Robinhood’s choices buying and selling experienced an outage. The startup supplied some of those affected $75 Amazon present playing cards.
In November 2019, some Robinhood customers uncovered an “infinite leverage” glitch.
The next month the Monetary Business Regulatory Authority fined the brokerage $1.25 million for not following “finest execution” practices from October 2016 to November 2017.