Retail traders have been flocking to trade stocks and cryptocurrencies on the popular app Robinhood — and it shows in the company’s latest Series G funding round.
On Sept. 23, a spokeswoman for Robinhood Markets Inc. disclosed that the fintech has increased its latest funding round to $660 million, at a company valuation of $11.7 billion.
The fresh funding is an extension of a Series G round first announced in August, when D1 Capital Partners invested $200 million in Robinhood.
New and stalwart investors in the app have reportedly been involved in the extension, among them Andreessen Horowitz, Sequoia, DST Global, Ribbit Capital and 9Yards Capital.
The spokeswoman indicated that the capital would be used “to support our core product and customer experience and new offerings like cash management and recurring investments.”
Reuters’ calculations using PitchBook data estimate that Robinhood has now raised roughly $1.25 billion from investors and secured a total amount of capital in excess of $2 billion to date.
While locked-in traders may be feeding demand for the app’s services and raising investor confidence, the ride in recent months hasn’t always been smooth.
As reported in April, Robinhood was thought to be seeking to raise the additional capital in response to the platform’s stresses in March, when it crashed three times during peak trading. Many traders reported heavy losses, having been unable to access their accounts and demanded compensation.
Robinhood began compensating some of the traders affected during the March disruptions, though the company declined to reveal how many users were affected.