Robinhood is set to raise at least US$200 million in new funding

The round is said to value the company at between US$7 billion and US$8 billion. (Bloomberg pic)

NEW YORK: Robinhood Markets Inc is close to securing at least US$200 million in fresh funding, according a person familiar with the matter.

The round is said to value the company at between US$7 billion and US$8 billion, although the details could change.

The cash infusion is coming from existing investors, said people familiar with the deal, all of whom asked not to be identified because the details are private. The funding talks are ongoing, but the company’s valuation could climb to as much as US$10 billion in a subsequent round, these people said, adding that the numbers are subject to change until the deal is closed.

A Robinhood spokesman declined to comment.

The Menlo Park, California-based startup, which offers free app-based trading, last raised money in mid-2018 at a valuation of US$5.6 billion. On top of the new funding, the company is working on launching its retooled cash management service later this year, the people said, after it was forced to temporarily shelve the product following backlash over how it was marketed, and whether it would be insured.

The tech website the Information earlier reported some details of the deal.