The retail trading app, Robinhood, announced an additional $460 million extended fundraising in its Series G round, bringing the total round funding to $660 million. Some of the current investors, including Andreessen Horowitz, Sequoia, and DST Global, participate in the round.
According to a Robinhood spokesperson speaking to Reuters, Robinhood Markets Inc. extended its Series G funding round, adding an additional $460 million from top investment partners. The latest extended Series G funding came barely two months after a $200 million investment from D1 Capital Partners.
The latest extended funding round brings the total valuation of Robinhood to $11.8 billion. The extended investment came from some of the existing partners and new ones, including Ribbit Capital and 9Yards Capital.
The latest funding round follows a successful trading period during the quarantine period on Robinhood, which simplified and popularized trading for amateur and millennial traders. However, the digital mobile retail exchange has faced several shutdowns in the past few months, and customer experience failures, raising concerns for traders.
According to the spokesperson, the new funding round aims to reduce the cases of system crashes and provide a better user experience on their platform. Robinhood spokesperson said,
“We’ve raised an additional $460 million 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 surge in users and capital invested in Robinhood over the past nine months have seen the trading app raise over $1.25 billion from investors in 2020 alone. This brings the total investment in Robinhood to $2 billion.
The trading app announced in July that it would be pausing its expansion into the U.K as the exchange focuses on its operations in the U.S. The company blamed the tough COVID 19 pressure on business as the cause to shelve its expansion plans.
Moreover, there have been complaints across the U.S that Robinhood is offering amateur traders very complex financial instruments to trade. In a sad case, a 20-year old committed suicide after checking their account and wrongly misinterpreted the data output.