FinTech startup Robinhood is moving forward with a planned initial public offering and will either pursue a direct listing or seek a special purpose acquisition company, Bloomberg reported.
Going public will give Robinhood a new infusion of capital and allow for easier access to future financing, sources said, per Barron’s.
Robinhood just raised $2.4 billion in a funding round led by Ribbit Capital, after raising $1 billion from current investors last week, following a trading frenzy that prompted the FinTech startup to halt trading on GameStop and other stocks.
The company said clearinghouse-mandated deposit requirements spiked to 10 times the normal number and Robinhood “Had to take steps to limit buying in those volatile securities to ensure we could comfortably meet our requirements.”
The debacle didn’t affect Robinhood’s allure – its app was downloaded more than a million times last week alone.
Founded in 2013 by Baiju Bhatt and Vlad Tenev, Robinhood offers no-fee digital trading in stocks, ETFs, options, and cryptocurrencies.
Fiasco triggered separate lawsuits filed by two states criticizing the company’s decision to halt trading.