CEO Vlad Tenev has tried in public appearances including with Elon Musk to explain why Robinhood halted trading in popular stocks including GameStop Corp.
Still, that wasn’t enough for many customers. Despite the relaxation of trading limits reducing the number of affected securities Sunday to eight from 50 some of its more than 14 million users are angry that they were restricted at all.
The fresh infusion will allow Robinhood to meet the demands of the National Securities Clearing Corporation (NSCC), which requested the trading app to come up with a $3 billion deposit in order to cover trading risks.
“This round of funding will help us scale to meet the incredible growth we’ve seen and demand for our platform,” Robinhood’s chief financial officer, Jason Warnick, said in a post on the company’s website.
The infusion was led by Ribbit Capital and included other existing investors like Sequoia Capital, Robinhood said. The company called it “a strong sign of confidence.”
The online trading firm has been at the center of a trading frenzy over the video-game retailer GameStop and other stocks, which have risen substantially over the past week.