Categories
Business

Online broker Robinhood raises $1 billion fresh funding amid GameStop frenzy

Online broker Robinhood has raised more than $1 billion of fresh capital from existing investors, having been strained by high volumes of trading this week and raising the ire of customers, celebrities and politicians for curbing the purchase of some hot stocks.

Robinhood’s existing investors include venture capital firms Sequoia Capital and Ribbit Capital, who came together on Thursday night to offer the emergency funding, according to a New York Times report.

“We’re pleased to share that we’ve raised over $1 billion from existing investors to continue to invest in record growth. This is a strong sign of confidence from investors that will help us continue to further serve our customers,” a Robinhood spokeswoman said in an email.




The firm has also tapped a credit line so that it has funds to ensure trading continuity when it lifts the rules.

The latest funding comes at a crucial time for Robinhood, which is also preparing for a high-profile initial public offering this year. Recent developments raise questions on whether the company will push forward with those plans.

Robinhood’s fee-free and simple-to-use app has made it popular with a new generation of small-time traders and its restrictions on Thursday drew a heavy backlash from high-profile politicians and celebrities.



READ: How hedge fund firms lost billions of dollars to a group of redditors