Co-founders and co-CEOs of Robinhood Baiju Bhatt and Vladimir Tenev/Robinhood
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Robinhood valued at $8.3bn after closing $280m Series F round
The most recent valuation means Robinhood is one of the most valuable fintechs in the world.
American investment platform Robinhood has closed a $280m Series F funding round that has given the company a valuation of $8.3bn.
The round was led by existing investor Sequoia Capital, who has invested in the likes of PayPal, Apple, Google and Square with participation from NEA, Ribbit Capital, 9Yards Capital, and Unusual Ventures.
According to a blog post on the company’s website, despite the economic uncertainty and market volatility, Robinhood has added: “more than three million funded accounts so far this year.”
Robinhood has said the funding will be used to invest in scaling its platform, launch new products as well as hiring more staff and opening its newest office in Denver.
Andrew Reed, partner at Sequoia, said: “Robinhood has made the financial markets accessible to the masses, and in turn, revolutionized the decades-old brokerage industry.”
“We’re excited to further our relationship with Robinhood, which we believe is at the beginning of its opportunity.”
Despite the most recent injection of funding and massive valuation, Robinhood has had somewhat of a rocky couple of months.
The announcement comes just over a month after the fintech pushed back its hotly-anticipated UK launch.
At the beginning of March 2020, Robinhood suffered an outage on a day when the US stock market surged by $1.1tr, leaving some customers tens of thousands of dollars out of pocket.
As a result, three class actions lawsuits were launched against the fintech in California, Illinois and Florida.
Subsequently, the investment platform found itself plunged into more controversy after offering some affected customers $75 compensation as long as they agreed not to sue the company.
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