Free stock-trading app maker Robinhood Market Inc. has raised $200 million in new funding on an $11.2 billion valuation amid continuing reports that the company is planning an initial public offering in the coming months.
The Series G round was led by D1 Capital Partners with a valuation significantly higher than the $8.6 billion valuation given to the company when it raised $320 million July 13 and a $8.3 billion valuation when it raised $280 million May 4.
Founded in 2013, Robinhood was the first and now the most popular zero-fee stock trading app, often cited as beloved by millennials. The company first started offering a web-based service in November 2017 before adding support for cryptocurrency trading in January 2018.
In a blog post today, Robinhood said it would use the new funding to meet customer needs, including hiring hundreds of new registered financial services representatives at its offices in Southlake, Texas, and Tempe, Arizona. The company also said it will add team members across all of its locations to reduce response times, build more self-service tools and enhance its information and educational tools.
Rumors that Robinhood was planning to go public first emerged in 2018 after it appointed Amazon.com Inc. veteran Jason Warnick as its first chief financial officer. Adding a finance executive to the C suite is one of the customary steps that startups take before filing for an IPO.
In the two years since, Robinhood has continued to raise more money, raising $800 million this year alone. Reuters reported that this latest round is widely seen as a precursor to an initial public offering by the company, which has seen a surge in day trading driven by customers stuck at home during the COVID-19 pandemic. Although at some point Robinhood is likely to go public, how this round is different from the last two rounds over the last two months is not clear.
Including the new funding, Robinhood has raised $1.7 billion to date.
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