Robinhood attracted 13 million users and $ 8.3 billion

Robinhood attracted 13 million users and $ 8.3 billion
CONTENT

  • Robinhood’s market value rises to $ 8.43bn

  • More than 13 million people use the Robinhood app

  • Robinhood is especially popular with the younger generation of investors

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Robinhood raised $ 280 million in new mega-round of funding, bringing the company’s market value to $ 8.3 billion.

Robinhood attracted 13 million users and $ 8.3 billion

More money for business development

A fintech startup that created a commission-free investment app has completed a $ 280 million F round of funding. The largest investor in this round was Sequoia Capital, one of Silicon Valley’s leading venture capital funds. NEA, Ribbit Capital, 9Yards Capital, and Unusual Ventures also took part in financing the startup..

Some of the money raised from the new round of funding will go towards improving the application and fixing infrastructure problems. In early March, many users were unable to access their accounts. And the support service was in no hurry to respond to requests.

The previous round of E funding brought the company $ 323 million. Companies such as DST Global and Sequoia participated in it. The combined market value of the company since this round in July 2019 reached $ 7.6 billion. According to new estimates, it is $ 8.3 billion.

Robinhood attracted 13 million users and $ 8.3 billion

Investment for youth

The Robinhood app is used primarily by millennials to trade stocks and cryptocurrencies. The younger generation of investors appreciate the simplicity and the ability to trade various asset classes without commissions and without unnecessary complications. The company previously announced its plans to create deposit accounts. Users will be able to earn interest income and use debit cards without commissions.

In December 2019, the company crossed the 10 million account mark. Thus, the company’s client base has grown by 1000% in three years. In addition, the number of active accounts has increased by another three million since the beginning of 2020..

For comparison, the largest US broker, operating in the industry since 1975, serves 11 million users. Robinhood has already reached 13 million customer base.One of Robinhood’s main competitors, E-Trade, announced that it had 4.9 million brokerage accounts at the end of 2019, with an annual growth rate of 7%.

Do you use similar investment services? Share your impressions in the comments.

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