Robinhood, a red-hot investing app that launched cryptocurrency trading in February, is planning an initial public offering (IPO). CEO Baiju Bhatt made the announcement during a talk at TechCrunch Disrupt SF. He says the company is currently looking for a CFO to lead the effort.
Robinhood currently has 5 million customers and roughly 250 employees. The startup is valued at an estimated $5.6 billion, up from $1.3 billion last year when it had 2 million customers.
What separates Robinhood from other trading platforms is that they collect zero commissions, making all trades free.
“We believe that the financial system should work for the rest of us, not just the wealthy […] We’ve cut the fat that makes other brokerages costly, like manual account management and hundreds of storefront locations, so we can offer zero commission trading.”
These perks have created enough momentum for the startup to land on two major media lists. It ranked #6 on LinkedIn’s 2018 Top Startups list, Robinhood, just ahead of cryptocurrency giant Ripple and just behind the popular scooter app Bird.
Robinhood Crypto also earned an honorable mention from Fast Company, which just announced its Innovation by Design awards for apps and games.
Robinhood Crypto received an honorable mention in @FastCompany’s 2018 Innovation By Design Awards. Be on the lookout as we continue improving Crypto for all of you–while keeping it commission free.https://t.co/jR86AuaYmG
— Robinhood (@RobinhoodApp) September 10, 2018
Founded in 2013, Robinhood is planning its IPO after five years of solid growth and revenue streams. The company generates revenue through its margin trading subscription service, Robinhood Gold, and by collecting interest on stored investor funds.