It seems doubts over its business model certainly aren’t scaring off venture capital interest.
U.S. online trading platform Robinhood, which provides users with commission-free options and cryptocurrency trading, has today announced the close of a Series D fundraising round to the tune of $363m, led by DST Global. New investors Iconiq, Capital G, Sequoia Capital and KPCB also took part in the round, alongside existing investors NEA and Thrive Capital.
The news marks the second major investment for DST Global in recent weeks, after it led a $250m Series B round which saw digital banking app Revolut become the latest fintech unicorn, pushing its valuation up to $1.7bn.
Robinhood’s own valuation, already a unicorn in its own right after previous investment, today sits at $5.6bn. The platform recently surpassed 4m users as it launched Robinhood Crypto, which has now been expanded to include five more U.S. states.
As an American online stock trading platform, Robinhood users can buy and sell U.S. listed stocks and ETFs with $0 commission, despite competitors charging up to $10 per trade. Its next largest competitor for crypto trading, Coinbase, charges fees of between 1.5 to 4 per cent on trades in the US.
Robinhood said in a statement today that the fresh capital will be used to accelerate product expansion, investing in its infrastructure and operations and hire new staff in the process.