The US-based Robinhood Markets Inc. is working on an Initial Public Offering (IPO) and has begun its search for a position of CFO. Following its establishment in February this year, the company has several plans concerning its expansion in the financial industry.
Robinhood App Preparing IPO
According to the TechCrunch reports, Robinhood plans to launch an IPO, so they are looking for a Chief Financial Officer (CFO) to help them in the process. The financial company seeks to expand its services through a series of audits with the renowned U.S. institutions. These include the Security and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA).
Due to the fact that the company and its app follow financial regulations within the States, ensuring support from the government is crucial. Thus, the IPO would seek out experts from the trading and banking sectors. This way they will provide necessary experience for further growth of operations.
Other Plans of Expansion
Since the launch in February 2018, Robinhood Company executed fundraiser projects, racking up near $500 million. The last round of funding took place in May, carried out by Russian firm DST Global. At the app’s start, over a million clients registered their accounts within the platform that employs strict KYC (Know Your Customer) and AML (Anti-Money Laundering) policies.
The overall value of Robinhood stands at $5.6 billion. The IPO can push this company to become the second largest fintech startup in the U.S. The startup generates three separate channels of revenues, including the interest on funds, the sale of cryptos to exchanges, and premium subscriptions.
However, to increase its 5 million user base, Robinhood app plans to implement several additional services as well. Banking license and cryptocurrency wallet platforms are both part of the rumors and not officially announced. The reason for secrecy probably lies in the fact that cryptocurrencies plummeted this year and due to fierce competition. Thus, the appearance of CFO within the small organization can help it scale its operations. In turn, management would also produce projects that would propel Robinhood’s financial figures.