The stock market trading app, Robinhood has raised $3.4 billion to invest in its record customer growth including an additional $1 billion in funding as announced on January 29. This is the biggest funding round that has been raised by Robinhood so far. The funding indicates that investors are optimistic about the trading firm amid the latest GameStop stock market trading saga. Investment Amount to Help Robinhood Scale the Incredible Growth The round investment round was led by Ribbit Capital, with participation from existing shareholders such as ICONIQ Capital, Andreessen Horowitz, Sequoia, Index Ventures, and NEA led by Ribbit Capital. In the announcement release, Micky Malka, Managing Partner, Ribbit Capital, stated: “Robinhood has served millions of people who have felt left behind by America’s financial system. We’re confident that Robinhood will emerge stronger through this phase of growth and unprecedented demand.” As per the announcement release, the investment amount will be used to enhance the products of the trading company, giving more people access to the financial system. There has also been an inflow of first-time investors in Robinhood. The trading app’s CFO Jason Warnick said the cash infusion will help Robinhood scale to meet the incredible growth demand the platform have seen so far, saying: “This round of funding will help us scale to meet the incredible growth we’ve seen and demand for our platform. We are humbled by our customers’ response to our offering, and remain inspired by everyday people taking control of their financial futures.” Robinhood’s Record-Breaking App Downloads Data shows the app had more than 3 million downloads in the month of January, its highest record. Meanwhile crypto trading app, Coinbase had 1.3 million downloads last month. Robinhood caused quite a stir last week after it temporarily suspended trading of several popular stocks, including GameStop and AMC. It also went on to limited cryptocurrency purchases as well. The trading app allows investors to buy cryptocurrencies, although they can’t transfer it out as cashing out can trigger capital gains taxes.
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