Robinhood's existing investors include venture capital firms Sequoia Capital and Ribbit Capital, who came together on Thursday night to offer the emergency funding, according to a New York Times report.
Reuters could not immediately verify if Sequoia and Ribbit helped with the emergency infusion.
"We're pleased to share that we've raised over $1 billion from existing investors to continue to invest in record growth. This is a strong sign of confidence from investors that will help us continue to further serve our customers," a Robinhood spokeswoman said in an email.
The firm has also tapped a credit line so that it has funds to ensure trading continuity when it lifts the rules.
The latest funding comes at a crucial time for Robinhood, which is also preparing for a high-profile initial public offering this year. Recent developments raise questions on whether the company will push forward with those plans.
Reuters was first to report in December https://www.reuters.com/article/us-robinhood-ipo-exclusive/exclusive-trading-app-robinhood-hires-goldman-sachs-to-lead-ipo-sources-idINKBN28I328 that Robinhood had picked Goldman Sachs Group Inc to lead preparations for the IPO, which could come this year and value it at more than $20 billion.
In an interview with CNBC on Thursday, Robinhood founder Vlad Tenev declined to comment on the IPO plans and said ... "will only say Robinhood is well capitalized and have a great growth opportunity ahead of us."
Robinhood's fee-free and simple-to-use app has made it popular with a new generation of small-time traders and its restrictions on Thursday drew a heavy backlash from high-profile politicians and celebrities.
(Reporting by Anirban Sen, Munsif Vengattil and Juby Babu in Bengaluru; Editing by Bernard Orr)
By Anirban Sen, Munsif Vengattil and Juby Babu
