Robinhood Financial has attracted a new round of investments worth $ 200 million from the closed-end fund D1 Capital Partners.
The company, which developed an application that allows users to trade stocks and other financial instruments without paying commissions, is now worth $ 11.2 billion.
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Founded seven years ago, the company has quickly gained popularity. The service has over 13 million active accounts, and the community has several tens of billions of dollars in assets under management.
Robinhood, a controversial application
However, critics say that Robinhood is a risky application for young investors, who do not know the financial markets very well and do not realize what risks they are exposed to. Recently, a 20-year-old user committed suicide after thinking he had lost $ 730,000. Other experts are fascinated by the service and believe that it has “democratized” access to financial instruments.
Despite criticism, “Robinhood investors” have managed to perform better than some of the big investment companies.
The startup posted sales of $ 180 million in the second quarter of this year. Revenues have doubled compared to the similar period in 2019, according to documents submitted by the startup to the Securities and Exchange Commission (SEC).
The company began to diversify. The Robinhood Snacks service – which includes a newsletter and a podcast – is already attracting 2 million users a month.