Robinhood surpasses two million users, solidifying position as fastest-growing brokerage ever
PALO ALTO, Calif.--(BUSINESS WIRE)--Robinhood, the world’s fastest-growing brokerage opening access to America’s financial system, today announced significant growth milestones and $110 million in Series C financing from DST Global, valuing the company at $1.3 billion. Existing investors Index Ventures, NEA, and Ribbit Capital, as well as new investors Greenoaks Capital and Thrive Capital participated in the round, bringing the company’s total funding to date to $176 million. Robinhood plans on deploying the capital to accelerate expansion of its products and services.
“We welcome DST Global as investors and look forward to sharing Robinhood with more people so everyone can participate in the U.S. financial markets and have the opportunity to join the money class,” said Baiju Bhatt, Robinhood’s Co-CEO and Co-Founder.
The new round of capital follows remarkable growth at Robinhood since launching publicly only two years ago. Led by Bhatt and Co-CEO and Co-Founder Vlad Tenev, the company recently surpassed two million users and $50 billion in transaction volume.
“We’re excited to partner with Baiju, Vlad and the Robinhood team on their mission of democratizing financial access for everyone,” said Rahul Mehta, managing partner at DST Global. “We’re impressed with their combination of scale, user engagement, innovation and efficiency through technology.”
Robinhood Gold, the company’s premiere trading service which offers margin, extended hours trading and instant deposits, is also experiencing rapid growth. Signups for Robinhood Gold are surging 17% month over month, and over 50% of the platform’s trading volume in 2017 derives from Robinhood Gold accounts, which start at $10 a month. The company also generates revenue from interest and order flow.
“The team at Robinhood has built a transformational business in a short period of time,” said Kareem Zaki, investor at Thrive Capital. “The company’s growth and consumer adoption rate is incredibly impressive, and they’re just getting started.”
Participation in the U.S. stock market is traditionally barred by exorbitant fees and arbitrary account minimums, contributing to the fact that only 48% of American adults hold stocks, despite the market being one of the best tools for wealth creation. Focusing on technology, automation, and design, Robinhood built a powerful and easy-to-use investment platform listing U.S. stocks and ETFs with zero commission fees and no account minimums for cash accounts.
Robinhood is a financial services platform making America’s financial system open to everyone. Robinhood’s powerful and easy-to-use platform lets you invest in U.S. stocks and ETFs, commission-free, and Robinhood Gold, its paid service for active investors, supports margin and extended hours trading. The fastest-growing brokerage ever, Robinhood counts over two million users and billions in transactions. The company is headquartered in Palo Alto, California, and backed by DST Global, Index Ventures, NEA, Ribbit Capital, Thrive Capital, and others. For more information visit www.robinhood.com or follow the company @RobinhoodApp.
About DST Global
Founded in 2009 by Yuri Milner, DST Global is one of the leading investment groups globally to focus exclusively on Internet related companies. DST Global is headquartered in Hong Kong. Its portfolio includes some of the world’s leading and most valuable Internet assets.