DriveWealth, a fintech that helps companies build stock-trading competitor platforms to Robinhood, announced raising $450 million Series D in a funding round led by Insight Partners and Accel, according to a press release.
The round included participation from SoftBank Group Corp.’s Vision Fund, Greyhound Capital, Citigroup’s Citi Ventures arm, cryptocurrency exchange FTX and existing investors Fidelity International and Point72 Asset Management, DriveWealth founder and CEO Robert Cortright told Bloomberg.
The funding round now brings DriveWealth to a $2.85 billion valuation, up $200 million from last year. Steve Cohen’s Point72 now owns approximately 15% of the company, and investors are also planning to purchase $300 million in secondary shares from existing investors, according to Bloomberg.
“It’s never been possible for someone in India to buy $20 worth of Amazon with a flick of a finger. A lot of people want to replicate the Robinhood model,” Cortright said.
The company provides Robinhood-esque trading technology to companies, allowing customers like Revolut and Square‘s Cash App to offer fractional trading. The platforms that DriveWealth helps create allows users to purchase portions of stocks for only $1, with options to buy all the way up to whole shares.
DriveWealth also powers investment opportunities such as SavingsOak’s HSA platform, that enables users to invest unused HSA funds to better manage health care costs, according to a press release.
The company also named former eBay executive Harry Temkin as chief information officer this week, with the goal of creating strong partnership and product pipelines to help continue growth.
Previously Temkin served as CEO and partner of KnowVera, executive vice president and global head of equity product development for Thomson Reuters in its development of Eikon.
“Harry’s perspective on DriveWealth’s capabilities, deep appreciation for client experience, and understanding of product development will further position DriveWealth as the partner of choice for embedded investing,” Cortright stated in a press release.
In other recent fintech news, Aspiration announced plans to go public via SPAC. CAT also cleared a £10 billion class action lawsuit against Mastercard, with 46 million claimants in the case which is related to inflated interchange fee charges.