Robinhood, the US stock trading app, has announced its acquisition of San Francisco-based credit card platform X1 for $95 million in cash. The deal is set to close in Q3 2023, pending customary closing conditions, with JP Morgan Securities acting as Robinhood’s exclusive financial advisor.
Facts
- X1, a credit card platform, offers customers a stainless steel credit card with smart credit limits, a rewards program, and automated features. It does not charge annual fees, late fees, or foreign transaction fees.
- The acquisition of X1 will help Robinhood expand its offerings and serve its customers’ complete financial needs.
- Deepak Rao and Siddharth Batra, co-founders of X1, will lead the new business within Robinhood. Rao will serve as the general manager of credit cards and report to Vlad Tenev, the CEO and co-founder of Robinhood.
- X1 rolled out to the public last year after securing $25 million in Series B funding.
- The X1 team will join Robinhood as part of the acquisition.
