Robinhood, the popular cryptocurrency and stock trading app, is taking a major step toward diversifying its business portfolio with the $95 million acquisition of credit card startup X1. The new income-based credit card is expected to generate additional revenue and strengthen relationships with customers.
In addition to X1, Robinhood has acquired a number of other firms, including MarketSnacks, Cove Markets, Binc, Say, and Ziglu. These acquisitions are part of the company’s strategy to offer a full range of financial services.
The success of X1 has been impressive, with a waiting list of 500,000 people eager to get its credit card in 2022. This demand highlights the market’s interest in new credit card solutions, and shows X1’s potential for expansion.
Cardholders are able to access credit based on their income levels. The card also offers special features such as rewards, free trial cards, and single-use credit cards, which provide customers with greater flexibility and convenience.
The company has received positive support from well-known venture capitalists, including Craft Ventures, Soma Capital, and FPV. This backing suggests that investors have a lot of faith in X1’s mission and prospects for success.
The involvement of Wesley Chan, an investor in both X1 and Robinhood, further emphasizes the two companies’ commitment to innovation in the financial services industry.
The acquisition of X1 is an important move for Robinhood, as it faces a decline in monthly active users and a recent decline in crypto trading revenue. By broadening its product offerings to a larger market, the company hopes to remain competitive and continue its long-term growth.
