Robinhood, a recognized trading application for stocks and digital assets, was able to create a $7 billion business in just a few years. This will be the valuation of the company if it is able to gather $200 million in a funding round from financial backers. The information was released by Bloomberg in an article published on May 24.
Robinhood App Could Reach $7 Billion Valuation
Robinhood, which is a very popular application for millennials and newcomers to the financial and crypto worlds. Indeed, the firm is growing its user base and it was able to monetize its services in a very efficient way.
As reported by Nasdaq, Robinhood Markets Inc. was able to make $8 billion in revenue just in 2017. In the future, the company could grow to $47 billion annually, becoming the fastest growing broker in history.
The company is currently making profits from the interest that they earn by lending money held in Robinhood accounts, selling orders that users make to high-volume exchanges that are searching for more liquidity, and subscriptions for users that pay between $10 to $200 per month.
The application has also been accepted in New York and it was recognized on the 2019 CNCB Disruptor50 list for a third consecutive year.
— Nasdaq (@Nasdaq) May 23, 2019
Due to the fact that it does not have commissions for users, it was able to attract a large number of individuals and millennials that are searching to maximize their profits. In general, these millennials have less money to spend than their parents and find no-fee schemes much better than other platforms with trading fees, such as traditional cryptocurrency exchanges.
There have been different surveys showing how millennials tend to prefer crypto exchanges more than traditional stock exchanges. Moreover, they also prefer digital currencies to gold or other stocks and assets.
During a conversation with CNBC, the co-founder and co-CEO of the platform Baiju Bhatt explained:
“Crypto has certainly added to our growth. In the next couple of years, I think you’ll see Robinhood looking like a full-service consumer finance company.”
In 2018, the company completed a $363 million funding round that raised its valuation to $5.6 billion. With the BitLicense that it obtained last year, the intention is to continue its expansion and growth in the market.