Robinhood has acquired bank card firm X1 for $95 million.
X1 launched an in-app inventory buying functionality late final yr.
Robinhood CEO and co-founder Vlad Tenev stated that the acquisition will convey his firm nearer to serving everything of consumers’ important monetary wants.
Inventory brokerage app Robinhood signed an settlement this week to amass six-year-old bank card startup X1. The deal is anticipated to shut within the third quarter of this yr for $95 million in money.
Previous to the acquisition, X1 had raised $62 million. The corporate, which was based in 2017 by Deepak Rao and Siddharth Batra, refers to its bank card as “the neatest card ever made.” The no-fee Visa bank card has many options that prospects have come to anticipate of a contemporary card. It affords aggressive rewards, prompt fee notifications through a tandem cellular app, a digital card quantity, and it permits prospects to show the cardboard on and off inside the app.
There are a handful of options that set the cardboard aside, nonetheless. The primary is the bodily card itself– it’s fabricated from 17 grams of stainless-steel. The cardboard additionally permits customers to create a single-use card quantity that’s mechanically cancelled after one use, which might come in useful for subscriptions customers don’t wish to neglect to cancel. Customers may also create a card quantity without cost trials that’s cancelled after 24 hours.
Robinhood CEO and co-founder Vlad Tenev defined the reasoning behind at this time’s purchase. “This acquisition will convey us nearer in direction of our purpose of serving everything of our prospects’ important monetary wants. Along with X1, Robinhood will now be capable to provide our prospects entry to credit score,” he stated.
The acquisition aligns with X1’s route, as nicely. The corporate launched an in-app inventory buying functionality that permits cardholders to purchase shares within the X1 app utilizing their rewards factors. X1 guides buyers by recommending shares primarily based on the cardholder’s spending habits, danger preferences, funding objectives, earnings, and time horizon.
Logistically the X1 staff will be a part of the Robinhood staff. Rao and Batra will oversee Robinhood’s new card enterprise. Rao will function GM of Credit score Playing cards and can report back to Tenev.
