Funding platform Robinhood is predicted to file for an IPO as early as March, according to Bloomberg, citing sources near the corporate.
The outlet had reported in early February that Robinhood was planning for a conventional IPO round Might. Since then, nonetheless, sources advised Bloomberg the corporate has held talks with underwriters about presumably shifting the submitting up. No last selections have been made, sources advised the publication.
Robinhood didn’t instantly reply to Insider’s request for remark.
The corporate had been eyeing an IPO as early as 2018 and initially focused the yr 2021. Final yr, Robinhood was valued at almost $12 billion, and in December, Reuters reported the platform employed Goldman Sachs to steer an IPO that might worth the fintech startup at greater than $20 billion. Bloomberg is now reporting the IPO might be valued at round $30 billion as a result of its newest fundraise.
Robinhood raised $3.4 billion from backers to assist submit collateral with the Depository Belief & Clearing Company, Bloomberg reported. The app had develop into tight on money after the Gamestop short-squeeze that rattled markets earlier this yr. Apart from a conventional IPO, Bloomberg experiences the corporate can be exploring a direct itemizing or a SPAC merger. It has additionally thought-about promoting shares on to its customers, although such a transfer can be unusual.
For the reason that starting of the yr, Robinhood has been engulfed in scandal. In late January, a lot of its customers –some convening on the Reddit forum r/WallStreetBets— began shopping for shares of corporations akin to Gamestop and AMC, squeezing hedge funds. Robinhood then briefly restricted customers from shopping for shares in these corporations. The corporate stated in a blog post it did this to assist meet its deposit necessities, however that hasn’t stopped it from going through backlash and accusations of market manipulation.
Bloomberg experiences an IPO may assist Robinhood safe future financing to appease regulators by rising its money buffer. It may additionally assist the corporate develop. The platform had over 13 million customers by the tip of final yr, and have become more and more well-liked as younger folks used the app amid the pandemic — some to earn further money, some for leisure.