Robinhood, the firm behind the commission-free cryptocurrency and stock trading app, is looking to hire a chief financial officer (CFO) that would enable it to conduct its initial public offering (IPO) this year, as first reported by TechCrunch on September 6, 2018.
IPO not ICO
According to a TechCrunch report, the Robinhood cryptocurrency exchange is making plans to get listed on the stock exchange.
Founded in April 2013, the firm launched its zero-fee cryptocurrency trading app that allows users in California, Massachusetts, Missouri, Montana, and several other US states to trade bitcoin and Ethereum.
The CEO of Robinhood, Baiju Bhatt, who was present at the TechCrunch Disrupt SF, revealed that the firm is looking to go public via the initial public offering (IPO) route and has started its search for a qualified chief financial officer (CFO).
He further stated that Robinhood is presently being audited by the US Securities and Exchange Commission (SEC), the Financial Industry Regulatory Authority (FINRA) and its security department, to ensure its system remains healthy.
A $5.6 Billion Valuation
Currently valued at $5.6 billion, in April 2017, the firm raised $110 million in its Series C funding round at a $1.3 billion valuation.
On May 10, 2018, Robinhood announced it had successfully raised $363 million in a Series D round of funding.
DST Global led the round, with participation from other highly reputed firms, including Capital G, Iconiq, Sequoia Capital, Kleiner Perkins, and Thrive Capital.
CEO Bhatt said,
“We’ll deploy the capital by accelerating our product expansion even more, investing in our infrastructure and operations, and hiring more world-class talent to join us along the way.”
Presently, the firm claims to have 5 million customers, covering 17 states in the U.S and it now supports altcoins such as bitcoin cash, Ethereum classic, litecoin and dogecoin in addition to its bitcoin and ether offerings.
While the startup offers users zero fee trading, it, however, has three primary streams of income.
The company reportedly earns interest on funds traders keep in their Robinhood account, secondly, it also sells order flow to stock exchange platforms that want more liquidity for their customers and its Robinhood Gold subscriptions generate significant revenues for the firm.
Robinhood Gold is the firm’s margin trading service. It charges users from $10 per month for $2,000 “extra buying power,” to $200 per month for $50,000 extra margin.
