The funding will be used by the commission-free trading platform to scale its platform and build new products
American fintech startup Robinhood has raised $280m in series F funding round led by existing investor Sequoia Capital, with participation from existing and new investors including NEA, Ribbit Capital, 9Yards Capital, and Unusual Ventures.
With the funding round, the fintech’s valuation has reached $8.3bn.
Established in 2013, Robinhood’s mobile app and website offer customers the ability to invest in stocks, ETFs and options through Robinhood Financial and crypto trading through Robinhood Crypto.
It is a FINRA-approved broker-dealer registered with the US Securities and Exchange Commission and a member of the Securities Investor Protection Corporation.
The firm reported that it has added over three million new users so far this year. It also claims that half of its new customers were first-time investors.
The company stated: “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 investment will be used by fintech firm to improve its customer experience, while scaling up its platform, building new products and to accelerate build-out for its operations.
The firm also plans to hire more talent across all of its offices, including at its newest office in Denver, Colorado.
Total users of Robinhood reached 10 million last year
Last year, the commission-free trading platform secured $323m in series E funding, bringing its valuation to $7.6bn. In December 2019, Robinhood announced that its total number of users has reached 10 million.
Sequoia Capital partner Andrew Reed said: “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.”