Commission-free online brokerage Robinhood said Monday (July 13) that it has added $320 million to a funding round disclosed in May, bringing the total for the round to $600 million and producing a valuation for the company of $8.6 billion, according to a blog post.
Robinhood said in the post that the investors behind the add-on to the round are TSG Consumer Partners and IVP. The investors listed by Robinhood as backing the first part of the latest round were Sequoia Capital, NEA, Ribbit Capital, 9Yards Capital and Unusual Ventures. Both groups consist of new and previous investors, according to Robinhood.
Robinhood said in the post that the new funding would be used "invest in scaling our platform, building new products, and accelerating build-out of our operations. That means hiring more top talent across all of our offices, including our newest office in Denver."
Sequoia Capital Partner Andrew Reed in the post: “Robinhood has made the financial markets accessible to the masses, and in turn, revolutionized the decades-old brokerage industry. We’re excited to further our relationship with Robinhood, which we believe is at the beginning of its opportunity.”
The company, founded in 2013, held its spot last month in the PYMNTS ranking of providers of personal finance applications.
In 2019, Robinhood said it had more than 10 million users. At the same time, the company announced it was expanding its offerings to include cash management services that among other things would let customers earn interest on cash they had deposited in their Robinhood accounts but not yet deployed to purchase securities.
In addition to offering stock trades, Robinhood also provides cryptocurrency trading services.
"Amid challenging times and market volatility, we’re humbled that people are turning to Robinhood to participate in the markets and build their financial future," the company said in the blog post. "We added more than 3 million funded accounts so far this year, and we’re grateful for the opportunity to serve each customer."