Robinhood is on a tear, and any doubters about it being a major player in the brokerage space should note that it now has more users than the famous E-Trade.
Robinhood also boasts that its user rate growth cements it as being the fastest-growing brokerage ever.
Robinhood’s latest funding round, which ended today, raked in $363 million, which pushed the crypto trading service’s valuation to $5.6 billion. Furthermore, the number of users has swollen to more than four million, which CNBC quickly pointed exceeded the E-Trade’s user numbers.
To get a clear understanding of these numbers, consider this. Last year, Robinhood’s valuation was roughly $1.3 billion, and it had roughly two million users.
Look no further than social media to see how much Robinhood, which offers zero-fee crypto trading services, is in demand. It’s answering the pleas of many who want it available in their states.
For example, we just reported to you yesterday how the Robinhood app has now officially opened up for the state of Michigan, after offering commission-free Bitcoin and Ethereum trading to residents of California, Colorado, Florida, Massachusetts, Missouri, Mississippi, Montana, New Mexico, and Wisconsin.
The funding round
The Series D round of funding was led by DST Global, with participation from new investors Iconiq, Capital G, Sequoia Capital, and KPCB. Existing investors included NEA and Thrive Capital.
In a blog post about the raise, Robinhood said:
We’ll deploy the capital by accelerating our product expansion even more, investing in our infrastructure and operations, and hiring more world-class talent to join us along the way.