Robinhood Attracts $200 Million as Valuation Swells to $7 Billion: Report
By CCN: Who says millennials don’t like to save and invest their money? By building a commission-free stock brokerage and trading app with a slick interface, Robinhood has built a $7 billion business in just six years. That’s the company’s valuation as it nears a $200 million funding round from its current financial backers, Bloomberg reports. The investment round is still unfolding and once complete could reportedly result in Robinhood fetching a valuation as high as $10 billion.
Robinhood closed its most recent funding round last year at which time a $5.6 billion valuation was attached.
The stock trading app boasts a stellar track record of growing its user base and monetizing its services.
According to Nasdaq, Robinhood Markets Inc. made $8 billion in revenue in 2017 and is projected to rake in $47 billion annually by 2020. It is already the fastest growing broker of all time.
Last year the investment app blew passed E*Trade after doubling its user base to 4 million. E*Trade, which was started in 1982, had 3.7 million user accounts at the time.
Start spreading the news, Robinhood Crypto is officially in New York now. Trade Bitcoin, Ethereum, and other crypto in New York State.https://t.co/HGyvW8NUk9 pic.twitter.com/K2XfXZukXO
— Robinhood (@RobinhoodApp) May 23, 2019
How Does Robinhood Makes Its Money?
With no commission fees, a common question people have when they first hear about Robinhood is: ‘How does the app make money?’ It’s a fair question.