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Anonymous sources have confirmed that Robinhood is planning to go public during the first quarter of the coming year. But it is not a final decision.
Trading platform Robinhood Market Inc is currently searching for banks to act as advisers and assist in an Initial Public Offering (IPO), possibly in 2021. A Bloomberg report revealed the company’s IPO plan, citing reliable sources.
According to a Bloomberg report, the company is already seeking banks that could act as advisers ahead of its potential public offering. However, Robinhood has not made an official announcement to go public.
As stated in the Bloomberg report, anonymous sources have confirmed that the company is planning to go public during the first quarter of the coming year. The sources added that Robinhood could also decide against the IPO plans.
Robinhood Funding before Possible IPO in 2021
In 2020, Robinhood has been securing major cash investments from different investors. In May, Robinhood’s valuation was $8.3 billion after it secured $280 million. Shortly after, the company raised an additional $320 million, increasing its valuation to $8.6 billion. As of the 17th of August, Robinhood was valued at $11.2 billion after a $200 million funding by investment from D1 Capital Partners.
Other Robinhood investors include Sequoia Capital, Ribbit Capital, DST Global, Index Ventures, Andreessen Horowitz, and 9Yards Capital.
In September, Robinhood secured $660 million in a Series G funding round. At the time, the funding pushed the company’s valuation to $11.7 billion. As noted by the company, the raised capital would support its primary business and improve customer experience. Also, Robinhood aims to expand its employee base in Southlake, Texas, Arizona, and Temple.
Over time, hackers had often targeted Robinhood as the company has recorded a number of hacking incidents. Last month, about 200 Robinhood accounts were affected in a hacking spree.
In an effort to avoid future hacks and protect customers, Robinhood has urged users to apply two-factor authentication. The company said the two-factor authentication would add another layer of protection to users’ accounts.
At the time of the most recent hack, some Robinhood customers said their accounts were affected despite implementing the two-factor authentication. Some customers also complained that the hackers liquidated their investments and transferred balances to payments apps such as Revolut.
A lot of users expressed their anger and disappointments through Reddit and Twitter. They blamed Robinhood for not taking preventive measures against the hack.
With about 13 million accounts, Robinhood allows users to trade gold, digital assets, equities, or funds on its platforms. Despite records of losses from companies globally amid the pandemic, Robinhood continues to grow. At the beginning of 2020, the company recorded an additional three million customer accounts. In 2020 Q2, the fintech company also reported an 11% increase, compared to Q1, in its daily average revenue trades (DARTs).
In addition, Robinhood has also been recording increases in the number of subscribers of the Robinhood Snacks weekly newsletter.