Robinhood raises an additional $320 million in funding at $8.6 billion valuation
July 13, 2020, 12:13PM EDT
1 min read
Robinhood, the popular stock and options brokerage, has lined up additional cash after the close of a Series F funding round in May, according to Fortune.
Per Fortune's report, the California firm has raised an additional $320 million from new and previous investors. TSG Consumer Partners and IVP are new investors participating in the round.
The firm's valuation stands at $8.6 billion, according to Fortune. In an addendum to its Series F announcement Robinhood said:
"We’re pleased to share that we’ve raised an additional $320 million in subsequent closings, bringing our total for the round to $600 million. The new funding comes from new and existing investors, including TSG Consumer Partners and IVP, and brings our post-money valuation to $8.6 billion."
The new cash injection comes amid an increase in Robinhood's user-base as well as scrutiny over its business practices. A pioneer in zero-commission trading, Robinhood has come under fire in recent months over whether it is exposing inexperienced traders to risky products. In response, Robinhood has made changes to its platform, making it more difficult to access options.
"We're rolling out improved in-app messaging this week to help customers better understand the mechanics of early options assignments, and we recently published more resources on our help center," the firm said of the changes in a tweet explaining a series of platform enhancements.
At the time of its previous raise, the firm said that it had added more than 3 million users since the beginning of the year despite a string of platform outages.