The company plans to use the funds to improve existing services and create new ones.
California-based startup Robinhood has secured an additional $460M in a G-series funding round. Reuters writes about this, citing data received from a an employee of the company.
The announcement of the completion of the next stage of raising funds did not prevent the company from receiving additional investments from a number of companies. The latter included D1 Capital Partners, Andreessen Horowitz, DST Global, Ribbit Capital, Sequoia, and 9Yards Capital. The round brought Robinhood $660M in total.
According to a spokesman of the company, they are going to spend funds to support the startup’s main products. Also, the enhancement of customer service is the goal of funraising. The organization’s team also plans to use the investments to work on new initiatives, including asset management.
Recall that 2020 was a difficult year for Robinhood. In the spring, the company faced a number of technical problems that led to system failures and user churn. Later, amid criticism over the incident with the suicide of one of the clients, the company temporarily abandoned its plan of expansion to the UK, despite long preparation.
In August 2020, regulators recorded a large number of customer service complaints from the startup. As a result, the US Securities and Exchange Commission (SEC) and the Financial Services Regulatory Authority (FINRA) decided to conduct an audit. Later it turned out that the brokerage service faces a fine of 10 million.
Previously, the company also faced problems. For example, in December 2019, the American Financial Services Regulatory Authority (FINRA) fined a startup $ 1.25 million for incorrect work.