Trading start-up Robinhood secures $660m in latest funding round

The app is credited with helping to popularise stocks trading among millennials

A person walks in front of the New York Stock Exchange. Robinhood Markets, the financial technology start-up credited with popularising trading among millennials during the pandemic, has raised $660m Show more

Robinhood Markets, the financial technology start-up credited with helping to popularise trading among millennials, has increased its latest funding round from investors to $660 million (Dh2.42 billion), a company spokeswoman said.

The new fundraising is an extension of the Series G round, which was announced last month, when D1 Capital Partners invested $200m in the company, and will give Robinhood an $11.7bn valuation, the spokeswoman said.

The new cash is coming from new and existing investors in Robinhood, including Andreessen Horowitz, Sequoia, DST Global, Ribbit Capital, 9Yards Capital, and D1 Capital Partners.

“We’ve raised an additional $460m in subsequent closings to our Series G to support our core product and customer experience and new offerings like cash management and recurring investments,” the spokeswoman added.

The fundraising underscores investor appetite to back Robinhood as the company benefits from increased trading activity by retail traders during the Covid-19 lockdown.

Robinhood’s latest funding round will take the amount of capital it has raised from investors in 2020 to around $1.25bn, and the total amount of capital secured to more than $2bn, according to Reuters calculations based on PitchBook data.