- Robinhood, a stock brokerage is popular for providing commission-free trading to buy and sell stocks, ETFs, options, and cryptocurrencies.
- Things did not go quite as usual for Robinhood in March as the application faced three outages.
- It took to Twitter on May 4 to announce a $280 million Series F funding, regardless of the unusual happenings.
Robinhood, a stock brokerage is popular for providing commission-free trading to buy and sell stocks, ETFs, options, and cryptocurrencies. It has been playing a leading role in the emerging fintech industry. Also, this popular investment tool offers its service to customers mainly through mobile applications.
It is worth highlighting that Robinhood’s zero commission feature led some of its competitors to charge lesser fees as well. It has set an example to other traditional exchanges that let consumers trade for a relatively higher fee.
The stock-trading App faces three Outages in March
However, things did not go quite as usual for Robinhood in March as the application faced three outages. The stock-trading app faced the first major outage as a result of the infrastructure issues. And it faced the second outage as the trading app reported technical problems. Lastly, the third outage it faced was because US stocks crashed to a larger extent. Also, the trading app faced its three outages on sequential days in a time of two weeks.
To develop an insight into what an outage actually is, it is the technical issues the company faces. As a result of which, the consumers face problems in trading during certain hours. This was certainly a huge setback for the trading app. These blunders shift the focus of investors to other applications.
Robinhood raises $280 million in Series F funding
Regardless of the unusual happenings, the trading app has appeared to revive back. It took to Twitter on May 4 to announce a $280 million Series F funding. And also this latest investment round signifies that it is now valued at USD 8.3 billion.
Today we’re announcing a $280M Series F funding. Amid challenging times, we’re humbled that people are using Robinhood to build their financial future, and we look forward to continuing to serve our customers. https://t.co/yZigUw6JxO
— Robinhood (@RobinhoodApp) May 4, 2020
Robinhood further expressed its gratitude to consumers who use its application given the scenario of such a challenging time. The stock-trading app added that it seeks to serve its customers with the best. Besides expressing its pride to have built a service that empowers consumers.
Furthermore, this latest round was headed by already existing investor Sequoia Capital, alongside new investors including NEA, Ribbit Capital, etc.,