Digital currency-friendly stock trading platform Robinhood Markets Inc. has reportedly hired Goldman Sachs to lead its upcoming initial public offering (IPO). The platform has experienced a massive surge in popularity especially in the wake of the coronavirus pandemic.
According to a Reuters report, Robinhood’s IPO is to take place in 2021. Citing a source familiar with the matter, the outlet claimed that the IPO will value the company at over $20 billion. The exact timing and valuation could change depending on the market conditions, the sources said.
As it was reported in November, Robinhood’s IPO has been an open secret on Wall Street. Bloomberg previously reported that the IPO is to take place in the first quarter of 2021. At the time, Robinhood called on banks to pitch for roles in the IPO, and as per new reports, Goldman Sachs emerged the favored pick.
While the coronavirus pandemic has brought some industries like air travel and hospitality to a halt, it has accelerated the rise of Robinhood. With many people spending more time at home, stock trading has become more popular in 2020. As Reuters noted, many analysts claim Robinhood is the driver of the unprecedented volatility that the stock market has experienced this year.
The Menlo Park, California-based company has attracted investors in their hordes over the years. According to Pitch Book data, it has raised $2 billion from 74 investors in ten funding rounds. In the latest one, an extended Series G funding round, the firm raised $660 million, pushing its valuation to $11.7 billion. Sequoia, Andreessen Horowitz, DST Global and Ribbit Capital were among the major VCs that led the round.
In 2020 alone, Robinhood has raised $1.25 billion.
Robinhood launched digital currency trading in early 2018. Baiju Bhatt, the cofounder and co-CEO, stated that Robinhood Crypto intends to make digital currencies “a much more stable, much more reliable, and a much healthier ecosystem.”
Since then, the company has expanded its digital currency offering across the U.S, launching support for Bitcoin SV and six other digital currencies to New Yorkers in May 2019. Robinhood partnered with Jump Trading LLC, brokerage firm which executes the orders.