Robinhood Markets, the operator of a free mobile trading app, is close to garnering a valuation of $7 billion or more.
CNBC, citing two people familiar with the deal, reported Robinhood has raised a minimum of $200 million in a recent late-stage fundraising round that will give it a valuation of between $7 billion and $8 billion.
According to CNBC, Robinhood’s co-CEOs Baiju Bhatt and Vlad Tenev have said an initial public offering is in the cards at some point – but that currently, it is focused on disrupting other areas of finance.
A spokesman told CNBC in April that getting the national bank charter will enable it to offer banking products.
“Robinhood’s goal is to be able to offer its customers a full suite of financial products to serve their needs,” the spokesman said.
Backlash quickly surfaced as to how the money would be insured and if it would be protected like a bank account that has the backing of the Federal Deposit Insurance Corp. Robinhood removed all its marketing material and now calls it a cash management feature offered within its brokerage accounts.
Robinhood has been enjoying fast-paced growth thanks in large part to the fact that its stock trading app is free.