The US-based commission-free trading app has successfully raised $280 million in Series F funding at an $8.3 billion valuation, per the fintech’s blog.
The fund exceeded expectations, as previously reported, and follows the $900 million already raised by the company to date.
Robinhood plans to use the funding to upgrade its platform, launch new products, hire more staff, and open a new office in Denver.
The raise stands out because global fintech funding has fallen amid the coronavirus pandemic, and other fintechs have been forced to lay off staff to remain afloat.
This boost in consumer interest in Robinhood’s products likely drew investor interest, enabling a large funding round despite the pandemic.
As a result, we think the funding should be used to develop and optimize products that will bring in revenue, such as Robinhood Gold, its premium account that starts at $5 a month and allows investors to trade with up to $1,000 of margin.
Depending on the severity of the economic downturn, Robinhood may later experience a drop in trading volumes on its platform as more consumers start to consider saving safer than investing.