Robinhood is looking to conduct its IPO in the first quarter of 2021, according to a report from Bloomberg on Nov 17. The company has reportedly spoken to banks about their involvement in the IPO, sources told the publication.

However, the plans are not fixed, and Robinhood may still change its position. The company is already valued at $11.2 billion with its last founding round raising $200 million. Its investors include major VCs like Sequoia Capital and Ribbit Capital.

Bloomberg Intelligence reports that retail trading could experience an even higher jump if the company were to host an IPO. Analysts claim that it would create further competition in the market, with other brokers noting its model. Competitors include Fidelity Investments which has its own crypto offerings, though its primary market is institutional investors.

Robinhood’s growth and success has largely been a result of its popularity with younger generations. Millennials have taken to the platform’s sleek design, while investors of all ages take advantage of zero-commission trades. Its usage even surged to the point where its systems suffered an outage in March 2020.

Launching an IPO could give the company the capital it needs to expand quickly. The interest is certainly there, as the pandemic has driven investing numbers up. A global survey shows that millennials are enthusiastic, expecting the highest returns. The extra capital could give Robinhood the edge it needs to push out competitors while capitalizing on momentum.

While 2020 has been a very strong year for the company, it has not all been smooth sailing. A hack that occurred in October 2020 resulted in 2000 accounts being compromised, resulting in a loss of funds. Cryptocurrency enthusiasts who have more experience in the market, have criticized Robinhood for the centralized nature of the platform.

Source: https://beincrypto.com/crypto-friendly-robinhood-trading-app-could-go-public-in-q1-2021/