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Robinhood raises another US$2.4 billion from investors

Robinhood raises another US$2.4 billion from investors

FILE PHOTO: Trading information for GameStop is displayed on the Robinhood App as another screen displays the Robinhood logo in this photo illustration January 29, 2021. REUTERS/Brendan McDermid/Illustration/File Photo

REUTERS: Robinhood raised another US$2.4 billion from shareholders, just days after existing investors pumped in US$1 billion in funding, the online brokerage said in a blogpost on Monday.

The round was led by Ribbit Capital, with participation from existing investors including ICONIQ, Andreessen Horowitz, Sequoia, Index Ventures and NEA. https://bit.ly/3oHtJx0

The funding comes after Robinhood was strained by high volumes of trading last week, when it also faced the anger of customers, celebrities and politicians for curbing the purchase of some hot stocks.

The brokerage, which has become popular with young investors for its easy-to-use interface, is at the heart of a mania that kicked off last week following calls by Reddit thread WallStreetBets to trade certain stocks that were being heavily shorted by hedge funds.

Sequoia Capital and Ribbit Capital came together last week to offer the US$1 billion funding, according to a New York Times report.

(Reporting by Noor Zainab Hussain and Anirban Sen in Bengaluru; Editing by Anil D'Silva)

Source: Reuters

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