- Commission-free stock trading company Robinhood Financial announced that it has raised $200 million from D1 Capital Partners. Now the company is valued at $11.2 billion.
Commission-free stock trading company Robinhood Financial announced that it has raised $200 million from D1 Capital Partners, a hedge fund headed up by Daniel Sundheim. Now Robinhood is valued at $11.2 billion on paper.
This is a major jump from the $8.6 billion that Robinhood was valued at as of July. One of the biggest reasons why Robinhood’s valuation surged is due to the company revealing it saw 4.31 million in daily average revenue trades (DARTs) for the month of June, which was greater than all of its rivals. The company’s DARTs for Q2 had more than doubled compared to the previous 3 months. And 3 million new customers were added at the beginning of 2020.
Robinhood’s usage especially surged during the COVID-19 pandemic as people across the country were forced to shelter-in-place and work from home.
Sundheim was previously the chief investment officer at Viking Global Investors and he opened D1 to outside investors in 2018 as it was one of the largest hedge fund launches of the year.
Some of Robinhood’s other investors include Sequoia, Kleiner Perkins, and GV.
Robinhood also revealed that the revenue it generates from customer trades more than doubled from the previous quarter. A majority of that revenue came from options trading.
Founded by Vladimir Tenev and Baiju Bhatt in 2013, Robinhood has raised well over $1.5 billion since the company launched. It is rumored that the company will be going public sometime in the near future.
