Arguably the highest-profile securities broker at the moment, Robinhood is set to become larger following a major infusion of capital. The company, which aims to disrupt the traditional brokerage segment of the finance industry by targeting younger traders, has raised an additional $320 million in its latest funding round, the company announced as an update to a May blog post.
That, combined with the $280 million in financing Robinhood originally announced in that May post, brings the total of the round to $600 million. It also values the company at $8.6 billion.
Robinhood said in the blog post that it will use the funds from this financing round to scale its platform, further build out its operations, and develop new products. It also plans to hire more staff to aid in these efforts. The company didn't hesitate to point out that it has added over 3 million funded accounts to its client roster so far in 2020.
"As more people choose Robinhood, we remain focused on continuously improving the experience we provide," the company wrote.
Robinhood seems to be stealing a march on more traditional brokerages, such as Charles Schwab (NYSE:SCHW) and even a relatively newer one like E*TRADE Financial (NASDAQ:ETFC). But Schwab and its ilk are becoming larger; E*TRADE was acquired by Morgan Stanley in February, while Schwab bulked up by purchasing TDAmeritrade (NASDAQ:AMTD) last November.
Robinhood is not publicly traded at the moment. On Tuesday, shares of Schwab, E*TRADE, and TDAmeritrade all rose to close marginally higher.