Robinhood, a $1.3 billion San Francisco brokerage company has recently said its user base surpassed 2 million.The company launched in March 2015 a
Robinhood, a $1.3 billion San Francisco brokerage company has recently said its user base surpassed 2 million.
The company launched in March 2015 and quickly become a millenial favourite. Young people preffered to use Robinhood`s services as they could invest without paying a commission for buying and selling stocks, as Business Insider (businessinsider.com) reported.
In an interview with Business Insider, co-founder Baiju Bhatt commented:
“Business is going well. Robinhood Gold is doing really well. We recently released metrics around our overall growth. We have done $75 billion in transactions so far. And we recently hit 2 million users. We also have saved customers $500 million in commissions.”
“Right now our user base is much more heavily concentrated with younger Americans. If there is a market we are “serving” it is definitely younger Americans.”, as Bhatt added.
In May 2015, Robinhood raised $50 million in a round of funding led by New Enterprise Assciates (NEA).
At first it was not that easy for the founders of Robinhood to rise money. After 75 investor pitches, Vlad Tenev and Baiju Bhatt managed to secure a few willing venture capitalists.
“There were a lot of people who didn’t believe in it, and we had to bang down a ton of doors. We were really relentless.”, as Vlad Tenev, the cofounder and co-CEO of Robinhood, told Business Insider.
Now Robinhood claims to be one of the fastest growing brokerage ever, raising $110 million in Series C financing led by DST Global, valuing the company at $1.3 billion, according to their blog.
Existing investors like NEA, Index Ventures, and Ribbit Capital, as well as new investors Thrive Capital and Greenoaks Capital are also taking part. In this way, the total funding amounts to $176 million.
Commenting on the integration of technologies into their offerings, Bhatt said:
“We ask ourselves one basic question: What are the things that could have a meaningful impact on the financial lives of our consumers —primarily younger Americans?”
“We fundamentally want to make people’s lives simpler. So we will look for technology that works toward that end.”
Yet, the company doesn`t point out to a particular technology like artificial intelligence (AI), for example.
“We don’t want to be one of the companies that say AI is the next big thing, let’s go build an AI application for Robinhood. That might not work. It might be awkward.”, as Bhatt said as quoted by Business Insider.