Robinhood, a trading up, saw a sudden surge of investors over its platform last week. The traffic was so high that it could not process all investors demand due to financial constraints.
Current funding raise of a total of $3.4 billion boosts Robinhood’s financial boundaries. The company raised it within a week from different investors.
Sudden Surge in Robinhood Platform Traffic
The last few days have been amazing for Robinhood. First, it had a record-breaking trading request from new investors. Second- it raised $3.4 billion in a week that is greater than its total funding since its inception in 2013.
Initially, the company raised $2.4 billion in the first few days of last week. With fresh funding of $1 billion, the total amount became $3.4 billion.
Third, Robinhood CEO shared the Clubhouse platform with the business giant Elon Musk. Tesla CEO Elon Musk turned interviewer for Robinhood CEO Vlad Tenev.
As an online trading organization, the company has to keep a certain amount of cash ready in case of losses. This condition forced Robinhood not to entertain more investors.
Robinhood Investors Detail and IPO Plans
Robinhood Chief Finacial Officer Jason Warnick looked relaxed after the current round of funding raise. He said that this amount will help us to grow and fulfill the demand at our platform. The current amount is more than enough to stabilize Robinhood operations.
When contacted, Robinhood did not comment on the funding type
Ribbit Capital, Sequoia Capital, and a venture capital firm participated in the latest funding round of Robinhood.
As per the closed sources, the company is planning to go public this year.
Once it goes public, the financial conditions of the company will be more stable. As per the records, private companies don’t have the same funding privilege as public companies do.
Robinhood’s sudden and enormous need for cash came about on Thursday, a day after an online battalion of small investors — many who congregate on the WallStreetBets forum on Reddit — drove the price of GameStop shares up 135 percent.