Robinhood Markets Inc. has closed a new round of funding valuing the company at $7.6 billion. That's up from its latest $5.6 billion valuation in 2018. The company raised $323 million in the most recent deal. Bloomberg reported in May that Robinhood was seeking to raise money.
The jump in valuation comes despite problems last year when the Menlo Park, Calif.-based startup announced a new checking account service. The product, which advertised an enticing 3% interest rate, quickly encountered backlash over whether and how it would be insured. The company was forced to backtrack on its plans to release the service.
In a statement Monday announcing the funding, Robinhood outlined several new initiatives it had recently rolled out, including expanded trading of cryptocurrency. The company was founded in 2013, and gained a following with millennial customers in particular by allowing people to trade stocks for free on its mobile app.
Robinhood's new funding round was led by existing investor DST Global. Other backers included Ribbit Capital, New Enterprise Associates, Sequoia Capital and Thrive Capital.