(Information) – Robinhood Markets Inc stated on Monday it has raised $280 million in a funding spherical that valued the web brokerage at $8.three billion because it advantages from new signups amid elevated market volatility and stay-at-home orders as a result of coronavirus.
The corporate, which launched millennials to equities, choices and crypto buying and selling, stated the newest spherical was led by current investor Sequoia Capital.
Fintech startups have been attracting a flood of investments since final yr and the pandemic is accelerating the development as extra prospects look to pay with out contact and use banking companies with out getting into branches.
Final month, fintech startup Stripe, whose merchandise let firms obtain on-line funds and invoice prospects, raised $600 million valuing it at $36 billion.
Many of those startups have been anticipated to go public this yr, however consultants monitoring preliminary public choices consider the COVID-19 pandemic might have compelled many to shift their plans to 2021.
Robinhood, based in 2013, disrupted the low cost brokerage house by offering commission-free buying and selling, forcing incumbent retail brokers, comparable to Charles Schwab Corp, TD Ameritrade Holding Corp, and Constancy Investments to comply with swimsuit.
Reporting by C Nivedita in Bengaluru; Modifying by Arun Koyyur