(Recasts lead and headline with details from NYT report)
Jan 28 (Reuters) – Trading platform Robinhood Markets is raising an infusion of more than $1 billion from its existing investors, having been strained by high volumes of trading this week, according to a New York Times report nyti.ms/2YrxsnD early on Friday.
The company contacted its investors, including venture capital firms Sequoia Capital and Ribbit Capital, who then came together on Thursday night to offer the emergency funding, the report said, citing five people involved in the negotiations.
According to the report, investors who provide new financing to Robinhood will receive additional equity in the company.
These investors will get that equity at a discounted valuation tied to the price of Robinhood shares when the company goes public. Robinhood plans to hold an initial public offering later this year, the report said.
Robinhood did not immediately respond to a Reuters request for comment.
Bloomberg News had earlier reported bloom.bg/3puCDiJ that Robinhood has drawn down some of its credit lines with banks, tapping at least several hundred million dollars from lenders including JPMorgan Chase & Co and Goldman Sachs Group Inc. (Reporting by Munsif Vengattil and Juby Babu in Bengaluru; Editing by Vinay Dwivedi, Bernard Orr)