Robinhood To Acquire UK Crypto App Ziglu In Europe Expansion
Robinhood announced on Tuesday that it has agreed to purchase Ziglu, a London-based fintech company that allows users to trade bitcoin and other cryptocurrencies. The acquisition will enhance the company’s expansion aspirations in the United Kingdom and Europe, according to the company.
The news comes nearly two years after Robinhood’s intentions to operate in the United Kingdom were shelved. The corporation stated at the time that it was focusing its domestic operations over overseas expansion.
Robinhood’s stock increased by more than 5% on Tuesday
The transaction might give Robinhood a much-needed boost to its growth prospects, which have been hampered since the GameStop trading frenzy last year.
Robinhood reported a decrease in monthly active users in the fourth quarter of 2021, from 18.9 million to 17.3 million, and stated it anticipated revenue of less than $340 million in the first quarter of 2022, down 35% from the previous quarter. Since listing on the Nasdaq this summer, the firm has lost almost two-thirds of its market value.
The purchase of Ziglu, according to Vlad Tenev, CEO and co-founder of Robinhood, “would help us expedite our global expansion efforts.”
In a blog post, Tenev said, “We’ll work together with the Ziglu team to utilize the best of both firms, discovering new ways to innovate and break down barriers for clients across the UK and Europe.”
The acquisition’s terms were not disclosed. According to Robinhood, the purchase is subject to regulatory clearances and other usual closing conditions.
Ziglu, which was founded in 2018, allows users to make payments, invest in cryptocurrencies, and earn interest on bitcoin and British pounds sterling assets.
To date, the company has raised a total of £17.5 million ($22.8 million), with £13.4 million coming from individual investors via Seedrs, an equity crowdfunding platform. It was previously appraised at £85 million.
It is one of the few cryptocurrency companies to have registered with the Financial Conduct Authority in the United Kingdom. For digital asset companies wishing to operate in the country, registration is a must.
After some companies withdrew their applications, the agency recently extended the deadline for firms to make the cut.
Ziglu’s CEO, Mark Hipperson, was a co-founder of Starling, a British digital bank. He added Ziglu and Robinhood “have a common set of goals.”
“As part of Robinhood, we’ll accelerate Robinhood’s expansion across Europe and provide millions more users with better access to crypto and its benefits,” Hipperson added.
DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
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Robinhood To Acquire UK Crypto App Ziglu In Europe Expansion
Robinhood announced on Tuesday that it has agreed to purchase Ziglu, a London-based fintech company that allows users to trade bitcoin and other cryptocurrencies. The acquisition will enhance the company’s expansion aspirations in the United Kingdom and Europe, according to the company.
The news comes nearly two years after Robinhood’s intentions to operate in the United Kingdom were shelved. The corporation stated at the time that it was focusing its domestic operations over overseas expansion.
Robinhood’s stock increased by more than 5% on Tuesday
The transaction might give Robinhood a much-needed boost to its growth prospects, which have been hampered since the GameStop trading frenzy last year.
Robinhood reported a decrease in monthly active users in the fourth quarter of 2021, from 18.9 million to 17.3 million, and stated it anticipated revenue of less than $340 million in the first quarter of 2022, down 35% from the previous quarter. Since listing on the Nasdaq this summer, the firm has lost almost two-thirds of its market value.
The purchase of Ziglu, according to Vlad Tenev, CEO and co-founder of Robinhood, “would help us expedite our global expansion efforts.”
In a blog post, Tenev said, “We’ll work together with the Ziglu team to utilize the best of both firms, discovering new ways to innovate and break down barriers for clients across the UK and Europe.”
The acquisition’s terms were not disclosed. According to Robinhood, the purchase is subject to regulatory clearances and other usual closing conditions.
Ziglu, which was founded in 2018, allows users to make payments, invest in cryptocurrencies, and earn interest on bitcoin and British pounds sterling assets.
To date, the company has raised a total of £17.5 million ($22.8 million), with £13.4 million coming from individual investors via Seedrs, an equity crowdfunding platform. It was previously appraised at £85 million.
It is one of the few cryptocurrency companies to have registered with the Financial Conduct Authority in the United Kingdom. For digital asset companies wishing to operate in the country, registration is a must.
After some companies withdrew their applications, the agency recently extended the deadline for firms to make the cut.
Ziglu’s CEO, Mark Hipperson, was a co-founder of Starling, a British digital bank. He added Ziglu and Robinhood “have a common set of goals.”
“As part of Robinhood, we’ll accelerate Robinhood’s expansion across Europe and provide millions more users with better access to crypto and its benefits,” Hipperson added.
DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
Join CoinCu Telegram to keep track of news: https://t.me/coincunews
Follow CoinCu Youtube Channel | Follow CoinCu Facebook page
Annie
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