Robinhood is offering more options
Robinhood, which is a zero-fee stock trading app, popular among millennials, has confirmed its series D funding round of $363 million. The round places the worth of the company at $5.6 billion.
Robinhood says that it is going to use the money to snag new talent, as well as offer more financial options – among them, a cryptocurrency-trading platform as well – and spearhead product growth.
Robinhood is fundraising more than a $5 billion
This year in March, according to the report of Wall Street Journal, Robinhood, which is a commission-fee stock-trading app, could actually be valued more than $5 billion. The unnamed newspaper sources said that the company was raising an estimated $350 million funding round that was led by a longtime investor, the investment firm DST Global.
Nowadays, it’s confirming both the size of the series D funding round, at $362 million, as well as the current valuation of $5.6 billion of the company, making the five-year-old startup a formable contender in the fintech-stock-trading market.
It is remarkable growth for the young company, which in its first attempt to secure funding, was rejected about 75 times.
The round that was brought in the new investors such as Kleiner Perkins, Sequoia, Iconiq, as well as CapitalG, said that Vlad Tenev, who is Robinhood cofounder. Tenev also told Business Insider that Robinhood is going to use the money to launch new products, as well as sale the growth of the products, and snag new talent. Most recently Robinhood brought on the Greylock investor named Josh Elman as its vice president of product.
Tenev said that they are expanding their product suite so that they can offer many financial services at the lowest possible price.
The primary offering of Robinhood is a zero-fee trading app which has taken off among millennials. Also, the company rolls out of a cryptocurrency-trading platform, where the users in about 10 US states can trade in fiat currencies for digital coins such as Bitcoin and Ether.
Tenev also declined to share the number of users that are trading in cryptocurrencies through the app of Robinhood, but also said that there was a “huge demand” for the service. He also said that they are working as fast as they can.
The goal is the best product on the market.
Like its “investing in stocks” options, the cryptocurrency-trading platform of Robinhood is also commission-free. Tenev said that it is would buckle down on its cryptocurrency offerings in the coming months.
He explained that cryptocurrency platforms have exorbitant fees and that they are hard to use. He thinks that it is fair to say that their goal is to build the best product on the market, where the users can have all of their investments in just one place.