Tiger Global, a New York-based investor which poured $250 million into Robinhood last month, is reportedly leading a $200 million round in the stock trading app’s rival, Public.com.
Business Insider reported the round, which is still not officially confirmed and still in the swings of finalising. It will likely hurtle Public.com to a $1.2 billion post-money valuation. That’s quadruple what its valuation has sat at these past two months.
Public.com’s management might consider raising even more capital, Business Insider’s sources claim.
The fintech’s December 2020 Series C attracted a significantly lesser $65 million in investments. Existing investor Accel, which led this round, is also understood to be part of Public.com’s mega $200 million round.
On 28 January, Public.com’s app downloads increased by more than six times, according to App Annie data. The same day, Robinhood imposed trading limitations on “meme stocks” like GameStop and AMC Entertainment.
But unlike Robinhood, Public.com – as on 1 February – decided to stop making profits from payment for order flows (PFOF). Public.com investors reportedly told Business Insider the fintech needs the fresh capital whilst it finds a way to make up the lost revenue.
One idea already launched is the stock trading app’s new tipping feature which customers can use when executing a trade. The firm also plans to introduce a paid subscription service, though its hasn’t specified when or what this will include.
Public.com is currently averaging 30% month-over-month growth. High profile backers include music duo The Chainsmokers, NFL athlete J.J. Watt, US football player Keisuke Honda, and the skateboarder Tony Hawk.
Its newest backer, Tiger Global, has reaped some big wins to date. These include a $200 million bet on e-commerce giant JD.com, which produced a $5 billion for the firm. According to the Wall Street Journal, it also made more than $1 billion on the Chinese shopping platform Meituan, which went public in 2018.