Robinhood Markets Inc. has closed a new round of funding valuing the company at $7.6 billion. That’s up from its latest $5.6 billion valuation in 2018. The company raised $323 million in the most recent deal. Bloomberg reported in May that Robinhood was seeking to raise money.
The jump in valuation comes despite problems last year when the Menlo Park, California-based startup announced a new checking service.
The product, which advertised an enticing 3% interest rate, quickly encountered backlash over whether and how it would be insured. The company was forced to backtrack on its plans to release the service.
In a statement Monday announcing the funding, Robinhood outlined several new initiatives it had recently rolled out, including expanded trading of cryptocurrency.
The company was founded in 2013, and gained a following with millennial customers in particular by allowing people to trade stocks for free on its mobile app.
Robinhood’s new funding round was led by existing investor DST Global. Other backers included Ribbit Capital, New Enterprise Associates, Sequoia Capital and Thrive Capital.
The Menlo Park, California-based startup, which offers free app-based trading, last raised money in mid-2018 at a valuation of $5.6 billion. On top of the new funding, the company is working on launching its retooled cash management service later this year, the people said, after it was forced to temporarily shelve the product following backlash over how it was marketed, and whether it would be insured.