Robinhood snaps up credit card platform X1 for $95m
US stock trading app Robinhood has signed an agreement to acquire San Francisco-based credit card platform X1 for $95 million in cash.
Robinhood acquires X1 for $95m
The acquisition is expected to close in Q3 2023, subject to customary closing conditions, with JP Morgan Securities acting as exclusive financial advisor to Robinhood.
X1, which rolled out to the public last year following a $25 million Series B funding round, offers a stainless steel credit card to customers with smart credit limits, a rewards program, and automated features with no annual fees, late fees, or foreign transaction fees.
“This acquisition will bring us closer towards our goal of serving the entirety of our customers’ critical financial needs,” says Vlad Tenev, CEO and co-founder of Robinhood. “Together with X1, Robinhood will now be able to offer our customers access to credit.”
With the acquisition, X1’s co-founders Deepak Rao and Siddharth Batra will oversee the new business for Robinhood, with Rao serving as general manager of credit cards and reporting to Tenev. The X1 team will also join Robinhood.
