Robinhood, the online brokerage associated with the surge in day trading by retail investors, is targeting a valuation of $40bn or more in its initial public offering, said people familiar with the plans, as the company published its fundraising prospectus on Thursday.
In a regulatory filing that gave the first look at its financial performance, Robinhood said revenues more than tripled to $959m last year, from $278m in 2019, and its explosive growth continued in the first quarter of this year.
The platform has more than doubled its registered users since the start of 2021 to 31m, it said. Of these, 18m were funded accounts at the end of the first quarter, up 151 per cent from the end of 2020. It had revenue of $522m in the first three months of the year, a 309 per cent increase from the same period the year before.