Robinhood Crypto Secures $280M in Series F Funding

Equities and crypto trading company Robinhood has raised $280 million in its latest financing leg at an $8.3 billion valuation.

Robinhood Markets Inc., which gained massive popularity in the stocks and crypto trading arena with its zero-commission offering, has completed its Series F funding.

As per the company’s May 4th announcement, investors during the funding round helped raise $280 million with the platform valued at $8.3 billion.

The financing sees the company surpass its target of $250 million that was set earlier in the year, with the brokerage firm valued at $8 billion. The Series F funding round was led by Sequoia, with participation from 9Yards Capital, NEA, Ribbit Capital, and Unusual Ventures.

Robinhood Crypto offers commission-free trading, with traders enjoying the platform’s easy to use design. Investors have access to most major digital assets in the market, including Bitcoin (BTC), Ethereum (ETH), Bitcoin Cash (BCH) and Litecoin (LTC).

The company is getting new funding at a time it’s looking to refine its reputation following major outages that hit last month.

In March, Robinhood experienced an outage that was big enough to impact investors who missed a major rally in the Dow. The company acknowledged the drawbacks and noted that it was encouraging to see investors trust its project amidst the uncertainty of COVID-19 and unprecedented market volatility.

But despite these setbacks, the company has recorded a major upside in its revenue over the past year. Records show that the startup’s quarterly revenues grew from $20 million for the period ending March 2019 to $60 million in March 2020.

The California-based start-up makes money from its customers’ order flows as well as from paid subscriptions to its premium trading services. With over 10 million users, the platform looks to continue its push into a leading trading service. The firm has registered more than 3 million new users, many of them first-time Millennials attracted by the free trades.

Founded in 2013, Robinhood took the brokerage and trading space by storm with its stock, options, and crypto trades. Its revolutionary commission-free trading was a major disruptor, with many retail brokers, including Fidelity Investments, TD Ameritrade and Charles Schwab Corp, forced to introduce similar offerings to maintain their markets.

So far, Robinhood has raised over $900 million in financing rounds led by its investor partners. The company’s last financing round had ended with the platform valued at $7.6 billion.

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