• Final yr, X1 introduced month-to-month gross sales of $50 million and annual spending of $1 billion.
• That is the seventh fintech firm Robinhood has acquired prior to now 4 years.

By buying X1, an organization within the bank card business, for $95 million, Robinhood took one other step in diversifying its enterprise portfolio. This monetary expertise firm affords pay as you go and single-use bank cards, in addition to income-based reward bank cards.

Robinhood stated in a press release launched on June 22 that the deal is a “important step” in direction of a more in-depth relationship with customers right this moment and needs to be accomplished by the tip of September.

Robinhood already affords debit playing cards, so that is simply one other method to generate income for the corporate. In a press assertion dated July 18, 2022, X1 introduced a month-to-month buying and selling quantity of $50 million and annual spending of $1 billion.

Portfolio diversification

Robinhood had 12 million month-to-month lively customers within the first quarter of this yr, in comparison with 16 million within the first quarter of 2022. The corporate’s crypto buying and selling division additionally suffered a 30% year-over-year decline in income, from $54 million in Q1 2022 to $38 million in Q1 2023.

In accordance with Crunchbase, that is the seventh fintech firm Robinhood has acquired prior to now 4 years. The day by day financial newspaper Market Snack was acquired in 2019, and in 2021 it acquired three extra corporations: inter-exchange cryptocurrency buying and selling platform Cove Markets, recruitment company Bink and shareholder platform Sei. In April 2022, simply earlier than the crypto winter started, Robinhood acquired UK-based cryptocurrency startup Ziglu.

Robinhood is more likely to diversify its portfolio because the regulatory crackdown on the cryptocurrency sector continues world wide.

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