Trading app Robinhood feeling merry with $363m funding
California-based trading app Robinhood is pointing in the right direction with a Series D funding round of $363 million.
The round was led by DST Global and takes Robinhood’s valuation to $5.6 billion. Other funding participants included new investors Iconiq, Capital G, Sequoia Capital, and Kleiner Perkins. Existing investors comprised NEA and Thrive Capital.
A lot of new firms talk about democracy and other noble things. Robinhood is no exception.
It says: “We’re guided by the belief that America’s financial system should work for everyone – not only the wealthy. In the past few months, we launched more products to further our mission of democratising financial services, and brought your investments together on one platform.”
On top of that it released a web platform with research and discovery tools, introduced commission-free options trading, and launched Robinhood Crypto, a commission-free cryptocurrency trading, now available in ten US states.
According to the firm, its platform now has over four million users. One of its main rivals will be Coinbase.
The new funding will be used for product expansion, investing in its infrastructure and operations, and hiring more staff.
The company was founded in 2015. It is a member of the Financial Industry Regulatory Authority (FINRA) and the Securities Investor Protection Corporation (SIPC), which protects securities customers of its members up to $500,000 (including $250,000 for claims for cash).