Stock trading app Robinhood Markets Inc has chosen Goldman Sachs Group Inc to lead the development of an initial public offering (IPO) which could come next year with expected value at over $20 billion.
Reuters reported, citing anonymous sources, that the IPO will come some time in 2021 but the exact timing will be subject to market conditions. The Robinhood’s last funding round in September valued the company at $11.7 billion.
According to PitchBook data, US-based crypto trading platform has raised a little more than $2 billion from private investors. Robinhood was backed by venture capital investors such as Andreessen Horowitz, Sequoia and Ribbit Capital, as well as celebrities including rapper Snoop Dogg and actor Jared Leto.
Robinhood was founded in 2013 by Baiju Bhatt and Vladimir Tenev, whose goal was to democratize finance. Users of the platform are able to make unlimited commission-free trades in stocks, exchange-traded funds, options and cryptocurrencies.
In recent months, the trading platform gained popularity among the crypto traders because of the commission-free trades. Additionally, the coronavirus pandemic also drove Robin’s growth up as trading became more popular among young investors during lockdown.
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