It appears just like the Merry Males of Ribbit Capital have come to the rescue of the social buying and selling app named after the mythological bowman who robbed from the wealthy to provide to the poor.

Between the ultimate buying and selling days of January and the primary buying and selling day of February, Robinhood has raised a whopping $3.4 billion in convertible debt financing. The financing was supplied to assist the brokerage agency handle the tidal wave of exercise that the platform skilled throughout final week’s buying and selling moshpit in shares of heavily-shorted GameStop.

And with the extra participation from Little Johns and Friar Tucks like Iconiq Capital, Adreessen Horowitz, Sequoia, Index Ventures, and NEA, it appears just like the social buying and selling app for Millennials has greater than picked up the requisite funding to proceed its mission of serving its more and more energetic buying and selling and investing clientele. Observe that Robinhood CEO Vlad Tenev mentioned the corporate’s clearing home initially had requested $3 billion in margin deposits final Thursday, earlier than decreasing the requirement by greater than 75% to $700 million.

“This funding is a robust signal of confidence from traders and can assist us construct for the longer term and proceed to serve folks by way of the exponential progress we’ve seen this 12 months,” Robinhood’s weblog learn on Monday morning.

With greater than 13 million customers – and an alleged 600,000 new accounts added on Friday alone – Menlo Park, California-based Robinhood has develop into the face of retail buying and selling in current months. The corporate raised greater than $1 billion in funding final 12 months as a stimulus-fueled inventory market – and an absence of alternatives for different financial-risk taking akin to sports activities betting – helped drive short-term merchants into the gamified, common Joe-enabling, setting of Robinhood. The net buying and selling and investing platform affords the flexibility to purchase and promote shares, exchange-traded funds (ETFs), choices, gold, and cryptocurrencies together with Bitcoin, Ethereum, and Dogecoin – all commission-free.

“We’re witnessing a motion of on a regular basis folks taking management of their very own monetary future, many investing for the primary time by way of Robinhood,” the weblog put up continued. “With this funding, we’ll construct and improve our merchandise that give extra folks entry to the monetary system.”

Because the frenzy in buying and selling over Gamestop shares grew, Robinhood got here below strain for its determination to limit buying and selling within the shares, in addition to in a lot of different shares that had skilled comparable spikes in exercise. Though Robinhood’s actions have been clearly permissible given its Time period of Settlement, the episode additional fueled the Us (retail dealer) vs Them (Wall Avenue hedge fund) narrative that, mockingly, Robinhood was based to champion on behalf of the “Us.”

Ribbit Capital Managing Companion Micky Malka spoke to this irony in his remark in regards to the funding. “Robinhood has served thousands and thousands of people that have felt left behind by America’s monetary system,” Malka mentioned. “We’re assured that Robinhood will emerge stronger by way of this part of progress and unprecedented demand.”

Photograph by Mikhail Nilov from Pexels

Supply hyperlink