A lady holds a smartphone with the Robinhood emblem within the background.
Rafael Henrique | Sopa Pictures | Lightrocket | Getty Pictures
Robinhood stated Tuesday it has agreed to shop for Ziglu, a London-based fintech app that we could customers business bitcoin and a number of other different cryptocurrencies. The purchase will assist Robinhood make bigger into the U.Okay. and Europe, the corporate stated.
The announcement comes just about two years after Robinhood halted plans to release within the U.Okay. On the time, the corporate stated it was once prioritizing its trade at house over global enlargement.
Stocks of Robinhood have been up greater than 3% Tuesday.
The deal may supply a a very powerful spice up to Robinhood’s enlargement possibilities. Its efficiency has weakened because the GameStop buying and selling frenzy remaining 12 months.
Robinhood reported a drop in per thirty days lively customers within the fourth quarter of 2021 — to 17.Three million from 18.nine million within the earlier quarter —and stated it expects first-quarter 2022 income of not up to $340 million, down 35% from the similar length a 12 months in the past. The corporate has misplaced more or less two-thirds of its marketplace worth since debuting at the Nasdaq remaining summer season.
Vlad Tenev, Robinhood’s CEO and co-founder, stated the corporate’s acquire of Ziglu “will assist us boost up our international enlargement efforts.”
“Along side the Ziglu crew, we’re going to paintings to leverage the most productive of each firms, exploring new tactics to innovate and damage down obstacles for patrons throughout the United Kingdom and Europe,” Tenev stated in a weblog submit.
Phrases of the purchase weren’t disclosed. The deal is matter to regulatory approvals and different commonplace last prerequisites, Robinhood stated.
Based in 2018, Ziglu we could customers make bills, put money into a spread of cryptocurrencies, and earn hobby on holdings of bitcoin and British kilos sterling.
The corporate has raised a complete of £17.five million ($22.eight million) thus far, together with £13.four million from retail buyers in the course of the fairness crowdfunding platform Seedrs. It was once remaining valued at £85 million.
It is among the few crypto companies that has controlled to sign up with the U.Okay.’s Monetary Habits Authority. Registration is a key requirement for virtual asset companies having a look to perform within the nation.
The regulator just lately prolonged a time limit for corporations to make the reduce after a lot of firms withdrew their programs.
Mark Hipperson, Ziglu’s CEO, was once in the past a co-founder of British virtual financial institution Starling. Ziglu and Robinhood “proportion a not unusual set of objectives,” he stated.
“As a part of Robinhood, we’re going to supercharge Robinhood’s enlargement throughout Europe and convey higher get entry to to crypto and its advantages to thousands and thousands extra shoppers,” Hipperson stated.