Robinhood Markets, known for its popular free stock-trading app, is on its way to at least a $7 billion valuation.

The Menlo Park, California-based start-up has ushered in at least $200 million in a late-stage funding round that would put its valuation between $7 and $8 billion, according to two people familiar with the deal, who asked not to be named because negotiations were private. The people said Robinhood's funding round, which mostly included existing investors, has not closed meaning the total could be higher.

Robinhood's previous Series D funding round pushed its valuation to $5.6 billion. The Information first reported the fundraising round, followed by Bloomberg News. Robinhood declined to comment on the funding round.

Co-CEOs Baiju Bhatt and Vlad Tenev have repeatedly said the company is planning an eventual public listing. In the meantime, it's moving further into traditional finance. Earlier this year, the company submitted an application to the Office of the Comptroller of the Currency, or OCC, for a national bank charter.

"This is a first step towards being granted a national bank charter which would allow Robinhood to offer traditional banking products and services," a Robinhood spokesman told CNBC last month. "Robinhood's goal is to be able to offer its customers a full suite of financial products to service their needs."

Robinhood hired Scott Racusin, former CEO Wedbush Bank and Merchants Bank of California, to oversee the project and eventually step in as president and chief executive of the proposed bank.

The company saw eye-popping growth last year, climbing from 4 million users in the summer to more than 6 million users by the end of 2018. After a failed launch late last year, Robinhood said it still plans to offer customers a cash management feature within brokerage accounts.