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

Robinhood Markets Inc. is close to securing at least $200 million in fresh funding, according a person familiar with the matter. The round is said to value the company at more than $7 billion.

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 talks are ongoing, but the company’s valuation could climb to as much as $10 billion, 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 $5.6 billion. In addition to 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 a backlash over how it was marketed, and whether it would be insured.

(More: Robinhood’s halted foray into banking prompts lawmaker scrutiny)

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

(More: Fintechs find new focus helping clients with cash management)

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