Robinhood raises another $2.4 billion from existing investors

On Monday, Robinhood reported that it had raised an additional $2.4 billion from shareholders, days after $1 billion was poured in by current investors to help it ride out a trading spree.

Ribbit Capital led the new funding round and also included Iconiq Capital, Andreessen Horowitz, Sequoia Capital, Index Ventures, and NEA as well.

The support comes after last week's high levels of trade strained faced by Robinhood, as it also experienced the wrath of consumers, celebrities, and politicians for curbing the buying of certain hot stocks.

Traders have overwhelmed Robinhood with orders over the past week to purchase and sell a handful of popular stocks. The clearinghouse that handles and settles the trades caused sharp swings in the prices of certain securities to call for more cash to cover future losses on the deals.

The brokerage, which has been famous for its easy-to-use interface with young investors, is at the root of a mania that began last week after calls by Reddit thread WallStreetBets to trade those stocks that were severely shortened by hedge funds.

According to analysts at JMP Securities, Robinhood's application was downloaded more than 600,000 times on Friday alone compared with about 140,000 in March last year.