Robinhood trading app secures £224 million in a Sequoia-led funding round

Robinhood, a renowned stock and crypto trading app has soared past its financial goals after raising £224.7 million in its Series F funding. The firm unveiled this news through an official announcement on May 4, noting that it managed to raise these funds at a £66.59 valuation. Per the publication, VC firm Sequoia spearheaded this funding round. Other key investors include NEA, Ribbit Capital, 9Yards Capital, and Unusual Ventures.

According to the official announcement, Robinhood seeks to use these funds to continue scaling its platform. The firm also aims to build new products and accelerate the build-out of its operations. As such, it will have to hire more top talent across its offices, including the recently opened branch in Denver.

Commenting on this feat, Andrew Reed, a partner at Sequoia said,

Trading appetite soared during volatility in March

This funding round comes after Robinhood suffered multiple high-profile outages on its platform in March. One of these outages reportedly saw traders miss out on the biggest one-day point gain in the Dow Jones’ history. However, the app has seen significant growth in revenue as the COVID-19 pandemic continues spreading across the globe. According to a previous report, Robinhood’s revenue surged from £16 million in March last year to £48 in March 2020.

In the announcement, Robinhood noted,

Robinhood to reimburse users following the March outages

Seeing as the outages in March affected multiple users, Robinhood vowed to reimburse all users that had made losses in US Dollars. The amount given to each affected user will, however, be determined on a case-to-case basis. While Robinhood has declined to disclose the number of affected users, it is facing at least one federal class lawsuit on behalf of several traders that fell victim to the outages.

Do you think the newly-acquired funds will help Robinhood avert future outages? Share your thoughts in the comment section below.