Robinhood valuation surges to $11.2 billion after latest funding round

(Reuters) - Robinhood Markets Inc, the fintech startup credited with helping popularize trading among millennials, said on Monday it has raised $200 million from investment firm D1 Capital Partners at a valuation of $11.2 billion.

Reuters August 18, 2020 00:06:48 IST
Robinhood valuation surges to $11.2 billion after latest funding round

Robinhood valuation surges to 112 billion after latest funding round

(Reuters) - Robinhood Markets Inc, the fintech startup credited with helping popularize trading among millennials, said on Monday it has raised $200 million from investment firm D1 Capital Partners at a valuation of $11.2 billion.

Robinhood is one of the hottest fintech startups in Silicon Valley, having consistently raised large sums at higher valuations from several marquee investors including Sequoia Capital, Ribbit Capital and Index Ventures. According to PitchBook and Reuters calculations, it has raised about $1.71 billion so far.

This year alone, the Menlo Park, California-based startup has raised $800 million in funds.

The latest funding round is widely seen as a precursor to an initial public offering (IPO) by the company, which has benefited from a surge in day trading, driven by customers stuck at home during the COVID-19 pandemic.

Some traders and analysts have attributed rallies of between 300% and 500% in stocks of bankrupt companies such as Hertz, Chesapeake, Whiting and JC Penney to retail investors using Robinhood.

The company, however, has been criticized for not doing enough to moderate excesses after one of its customers took his life believing he had lost more than $730,000 using the free trading app.

Robinhood said in June it may make it harder for people to qualify for sophisticated options trading on its platform and that it would improve its user interface.

Robinhood was founded in 2013 and now has more than 10 million user accounts. Customers at the brokerage, which has been credited with helping usher in commission-free trading throughout the retail brokerage industry, have a median age of 31.

(Reporting by Noor Zainab Hussain in Bengaluru; Editing by Vinay Dwivedi)

This story has not been edited by Firstpost staff and is generated by auto-feed.

Updated Date:

TAGS:

also read

France, Germany to agree to NATO role against Islamic State - sources
| Reuters
World

France, Germany to agree to NATO role against Islamic State - sources | Reuters

By Robin Emmott and John Irish | BRUSSELS/PARIS BRUSSELS/PARIS France and Germany will agree to a U.S. plan for NATO to take a bigger role in the fight against Islamic militants at a meeting with President Donald Trump on Thursday, but insist the move is purely symbolic, four senior European diplomats said.The decision to allow the North Atlantic Treaty Organization to join the coalition against Islamic State in Syria and Iraq follows weeks of pressure on the two allies, who are wary of NATO confronting Russia in Syria and of alienating Arab countries who see NATO as pushing a pro-Western agenda."NATO as an institution will join the coalition," said one senior diplomat involved in the discussions. "The question is whether this just a symbolic gesture to the United States

China's Xi says navy should become world class
| Reuters
World

China's Xi says navy should become world class | Reuters

BEIJING Chinese President Xi Jinping on Wednesday called for greater efforts to make the country's navy a world class one, strong in operations on, below and above the surface, as it steps up its ability to project power far from its shores.China's navy has taken an increasingly prominent role in recent months, with a rising star admiral taking command, its first aircraft carrier sailing around self-ruled Taiwan and a new aircraft carrier launched last month.With President Donald Trump promising a US shipbuilding spree and unnerving Beijing with his unpredictable approach on hot button issues including Taiwan and the South and East China Seas, China is pushing to narrow the gap with the U.S. Navy.Inspecting navy headquarters, Xi said the navy should "aim for the top ranks in the world", the Defence Ministry said in a statement about his visit."Building a strong and modern navy is an important mark of a top ranking global military," the ministry paraphrased Xi as saying.