The company plans to use this funding to enhance customer experience and its core products
American financial service company, Robinhood Markets, Inc., has recently announced that it has raised US$200 million from its latest Series G funding round from D1 Capital Partners. Reportedly, the new funding round has valued Robinhood at $11.2 billion from the previous set valuation of $8.6 billion. In July 2020, the company had raised $320 million. With this investment, Robinhood plans to invest in enhancing its customer experience and core products.
In a recent statement, the company revealed that they are delighted to see an overwhelming response from people on the Robinhood platform to learn more about markets. Over the past few months, increasing participation in the market could prove beneficial for a lot of people.
All these developments come amidst recent talks of Robinhood going public and the scrutiny of how the firm generates money. Since its inception, Robinhood has created huge ripples in the brokerage industry by innovating the idea of zero-commission trades and creating a slick mobile interface.
Additionally, this new $11.2 billion valuation instills a vote of confidence amongst the company, which recently has incurred a series of setbacks. These involve technical meltdowns that led to the firm’s website going offline during high trading periods in March.
Besides, Robinhood has also faced some harsh criticism over its casino-like interface, which includes popping off of confetti whenever a customer completes a trade. Allegations were that this type of interface encouraged a style of irresponsible trading.
Evidently, the company along with its founders pledged for a long time to pursue an IPO, with Robinhood even appearing in a number of startup lists that were anticipated to go public in 2020.
Source Credit: https://blog.robinhood.com/news/2020/8/17/series-g