NEW YORK (Reuters) - Commission-free stock trading startup Robinhood said on Monday it has raised $323 million in a new round of funding that values the company at $7.6 billion.

The round was led by DST Global, with participation from investors including Ribbit Capital, Sequoia, Thrive Capital and NEA, Robinhood said.

The company said it will use the funding to expand the business.

Menlo Park, California-based Robinhood is one of several young companies that aim to compete with traditional financial institutions by offering cheaper and more user friendly digital services.

Financial technology startups will usually have lower costs because they have no legacy infrastructure to maintain and have automated a lot of their processes.

Robinhood, which has gained popularity among young consumers for its commission-free stock trading app, has been looking to expand the types of financial services it offers.

In December the company announced that it would soon be launching a “checking and savings” service, whose customer deposits would be insured by the Securities Investor Protection Corp for up to $250,000.

A day after the announcement, the chief executive of SIPC told reporters he did not believe the fund would actually insure Robinhood’s accounts. In response Robinhood suspended the launch.

The company is currently working on a new cash management feature, according to a spokeswoman.