Robinhood scraps launch of its investing app within the UK
The Robinhood funding app is see on a smartphone on this photograph illustration on June 24, 2020 in Washington,DC.
Jim Watson | AFP | Getty Pictures
Robinhood has postponed the launch of its standard stock-trading app within the U.Okay. indefinitely.
The Menlo Park, California-based fintech agency instructed folks signed as much as its U.Okay. waitlist Tuesday that it had put the brakes on its international enlargement ambitions to focus totally on its dwelling market.
“So much has modified on this planet over the previous few months, and we have made the troublesome determination to postpone our U.Okay. launch indefinitely,” a Robinhood spokesperson mentioned in a press release. “As an organization, we’re refocusing our efforts on strengthening our core enterprise within the U.S.”
“Though our international enlargement plans are on maintain for now, we’re dedicated to democratising finance for extra folks world wide. We look ahead to the day once we can carry this mission to the U.Okay.”
The corporate opened a waitlist to British clients in November after acquiring dealer authorization from the Monetary Conduct Authority final summer time. A U.Okay. enlargement would have put Robinhood head-to-head with incumbent on-line brokers like Hargreaves Lansdown in addition to rival fintech start-ups like Revolut and Freetrade.
CNBC understands that Robinhood will shortly pull its U.Okay. web site and shut the waitlist, whereas buyer e mail addresses shall be deleted from the corporate’s programs to guard customers’ privateness. The corporate plans to switch most of its 10 staff within the U.Okay. to U.S. groups, nonetheless others shall be let go.
The agency has change into a preferred entry level for first-time buyers within the U.S., rising from 1 million customers in 2016 to over 13 million this yr. It skilled a wild surge in buying and selling volumes in the beginning of the coronavirus pandemic which resulted in a sequence of main outages in March.
Robinhood discovered itself in scorching water following the suicide of a 20-year-old dealer who mentioned he misplaced $730,000 on the free buying and selling app. The corporate responded by pledging to make it harder for customers to entry choices buying and selling, and by making a $250,000 donation to the American Basis for Suicide Prevention.
The agency was final valued at $8.6 billion after elevating one other $320 million earlier this month. There was a lot hypothesis about whether or not the corporate will go public, nonetheless Robinhood hasn’t set a date for a possible preliminary public providing.