By Aisling Finn on Thursday 24 September 2020
The fintech has raised over $1.2bn in this year alone.
American investment platform Robinhood has topped up its latest funding round with an additional $460m.
The fintech revealed it had raised $200m as part of a Series G round just over a month ago at a valuation of $11.2bn, with the recent raise having pushed its valuation even higher to $11.7bn.
Robinhood’s most recent injection of cash came from both new and existing investors, including Andreessen Horowitz, Sequoia Capital, DST Global, Ribbit Capital, which has invested in the likes of Funding Circle, Raisin and Revolut, 9Yards Capital, investor in Coinbase and Bud, and D1 Capital Partners, which was the sole investor in the part of the Series G.
A spokesperson told Reuters that the fresh capital will be used to “support our core product and customer experience and new offerings like cash management and recurring investments.”
In 2020 alone, Robinhood has raised over $1.2bn and has seen its valuation jump by over $4bn as the investment platform reaps the benefits of a surge in trading as a result of the coronavirus pandemic.
Robinhood cited wanting to focus its efforts on “strengthening our core business in the US making further investments in our foundational systems,” as the reason for the decision.
Some customers reportedly lost hundreds of thousands of dollars and three class-action lawsuits, in California, Illinois and Florida, were launched against the trading app.