Robinhood to acquire San Francisco-based X1
By Delisha Fernandes
Robinhood Markets has signed agreement to acquire San Francisco-based X1, a platform that offers a no-fee credit card with rewards on each purchase.
Providing people with access to a no-fee credit card aligns with the company’s mission to democratise finance for all. The X1 stainless steel credit card has no annual, late, or foreign transaction fees. Further, design innovation is a part of the company’s DNA, and X1 brings the sleek and intuitive mobile app experience our customers have expected.
“This acquisition will bring us closer towards our goal of serving the entirety of our customers’ critical financial needs. Together with X1, Robinhood will now be able to offer our customers access to credit,” said Vlad Tenev, CEO and co-founder of Robinhood.
“When founding X1, we set out to create a different kind of credit card with an unparalleled experience for customers, like Robinhood’s mission to make our financial markets more accessible to all. We share the same ethos, and joining together with Robinhood, we’ll be able to offer an enhanced credit card experience,” said Deepak Rao, CEO and co-founder of X1.
We are also bringing the X1 team onboard to Robinhood. X1’s co-founders, Deepak Rao and Siddharth Batra, will oversee this new business, with Rao serving as GM of Credit Cards. He will report to the company’s CEO and Co-Founder Vlad Tenev.
Robinhood expects the final merger consideration to be approximately $95 million in cash, subject to customary closing adjustments and conditions. The acquisition is expected to close in Q3 2023. J.P. Morgan Securities, LLC served as exclusive financial advisor to the company.
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