Robinhood disclosed the fundraising increase after the web brokerage pulled again on buying and selling curbs it imposed amid final week’s Reddit-fuelled market frenzy.
Robinhood Markets introduced Monday that it had raised an extra $2.4 billion from current shareholders, on high of the $1 billion it took in final week.
The most recent financing spherical was led by Ribbit Capital and likewise consists of Iconiq Capital, Andreessen Horowitz, Sequoia Capital, Index Ventures and NEA, Robinhood mentioned in a weblog publish.
“This spherical of funding will assist us scale to satisfy the unimaginable development we’ve seen and demand for our platform,” Chief Monetary Officer Jason Warnick mentioned within the publish.
Robinhood disclosed the fundraising after the web brokerage pulled again on buying and selling curbs imposed within the wake of final week’s Reddit-fueled market frenzy. However because the tumult entered a second week, that hasn’t quelled clients’ suspicions of the agency’s motives.
Chief Government Officer Vlad Tenev has tried in public appearances — together with with Elon Musk — to clarify why Robinhood halted buying and selling in widespread shares together with GameStop Corp. Nonetheless, that wasn’t sufficient for a lot of clients. Regardless of the comfort of buying and selling limits — lowering the variety of affected securities Sunday to eight from 50 — a few of its greater than 13 million customers are indignant that they had been restricted in any respect.
Enterprise capital buyers are key stakeholders for Robinhood, after they helped elevate its valuation to about $11.7 billion in a September funding spherical.
The most recent spherical, following final week’s emergency infusion, suggests its preliminary public providing hangs within the stability.
The present turmoil might delay Robinhood’s IPO, which is deliberate for as early as Could, one individual acquainted with the matter mentioned. True to its mission, the buying and selling platform had thought of an unusually retail investor-centric providing by allocating a major minority of listed shares to purchasers, Bloomberg reported in January. No closing determination on that plan had been made on the time.
The most recent fundraising was reported earlier by the Wall Avenue Journal.