X1 announced $50M in monthly volume and $1 billion in annualized spending last year.
This is the seventh fintech company Robinhood has purchased in the last four years.
By purchasing X1, a company in the credit card industry, for $95 million, Robinhood has made a fresh move to diversify its business portfolio. The financial technology company provides prepaid and one-time use credit cards, as well as an income-based rewards credit card.
According to a statement released by Robinhood on June 22, the transaction is “an important step” towards a more intimate connection with its current consumers and should be completed by the end of September.
Since Robinhood already provides debit cards, this is just another way for the company to make money. X1 announced $50 million in monthly volume and $1 billion in annualized spending in a press statement dated July 18, 2022.
Diversifying Portfolio
In comparison to the first quarter of 2022, when Robinhood had 16 million monthly active users, it only had 12 million in the first quarter of this year. The company’s crypto trading division also suffered a year-over-year revenue fall of 30%, from $54 million in Q1 2022 to $38 million in Q1 2023.
According to Crunchbase, this is the seventh fintech company Robinhood has purchased in the last four years. MarketSnacks, a daily financial publication, was purchased in 2019, and in 2021 the business made three further acquisitions: the cross-exchange cryptocurrency trading platform Cove Markets, the employment agency Binc, and the shareholders’ platform Say. In April 2022, just before the start of the crypto winter, Robinhood bought the United Kingdom-based startup Ziglu, which dealt in crypto assets.
Amid the ongoing regulatory crackdown on the crypto sector around the globe, Robinhood is likely to diversify its portfolio.