Robinhood got additional $2.4 billion funding over the weekend just 2 days after raising $1 billion lifeline
Is Robinhood in trouble? Just two days ago, the free-trading app Robinhood raised a $1 billion lifeline from investors to stay afloat. Then over the weekend, The Wall Street Journal reported that Robinhood has raised another $2.4 billion from shareholders.
The announcement comes a few days after investors agreed to pump $1 billion into the cash-strapped fintech startup to help it ride out a trading frenzy in popular stocks including GameStop.
Confirming WSJ’s reporting, Robinhood issued a statement on its website saying that it raised $3.4 billion to fuel record customer growth. The round was led by Ribbit Capital with participation from existing investors including ICONIQ Capital, Andreessen Horowitz, Sequoia, Index Ventures, and NEA.
“This funding is a strong sign of confidence from investors and will help us build for the future and continue to serve people through the exponential growth we’ve seen this year. We’re witnessing a movement of everyday people taking control of their own financial futures, many investing for the first time through Robinhood. With this funding, we’ll build and enhance our products that give more people access to the financial system. We will also continue to invest in expanding access to financial literacy in service of our mission to democratize finance for all. We look forward to sharing more details in the coming months.”
The millennial-favored stock trading app came under attack last week after it banned Reddit amateur traders known as WallStreetBets (a Reddit board of over 2.8 million members) from trading on its platform. The following day, Robinhood caved after a growing chorus of public figures like U.S. Congresswoman Alexandria Ocasio-Cortez (AOC), Senator Elisabeth Warren, Elon Musk, and others.
Founded in 2015 by co-founders and Co-CEOs Vlad Tenev and Baiju Bhatt, Robinhood’s powerful investment platform offers commission-free U.S. equity and options trading, as well as margin and extended hours trading through Robinhood Gold. The fastest-growing brokerage ever, Robinhood counts over three million users and billions of dollars in transaction volume.