Connect with us

Stock Market

Robinhood’s Revenue Increased By 514% YoY- $682M In 2020

Published

on

The FinTech industry is one of the fastest-growing industries despite the effects of COVID-19 slowing down its momentum. One of the more recent successes to come out of the FinTech industry is Robinhood Markets, Inc. or simply known as Robinhood.

The company was founded in 2013 and officially launched its mobile-app that allowed investors to invest in commission-free trades of stocks and exchange-traded funds in 2015. Since then, according to data presented by Buyshares.co.za Robinhood’s order flow revenue experienced a 514% YoY increase reaching $682M in 2020.

Robinhood’s Revenue Increased By 514% YoY in 2020

In 2014, before the app was even launched, an estimated 340,000 people signed up to the app’s waitlist and a month before launch in March 2015, the app’s waitlist was 700,000 names long. Since then, Robinhood has gone from strength-to-strength, and 2020 was their biggest year yet.

In 2020, Robinhood’s order flow revenue was recorded at $682M a 514% YoY increase from 2019’s revenue of $111M. Robinhood’s value also greatly increased in 2020 to $11.7B from $7B in 2019 – an increase of over 67%. This figure is projected to grow by 71% to $20B in 2021.

Robinhood’s user base also continues to grow after first crossing the 1 million user mark in 2016. Robinhood added 3 million users in 2020 taking their total number of users to 13M.

Robinhood Helped Take Microinvesting Mainstream

Before apps like Robinhood, investing in stocks usually involved some sort of fee or commission structure. The founders of Robinhood Vladimir Tenev and Baiju Bhatt helped build these investment systems for large financial institutions and saw the potential in the very market that felt was being excluded unnecessarily by investment vehicles.

In developing Robinhood, Tenev and Bhatt aimed to break down the barriers to entry and tap into a potentially rich market. When the app was launched Batt said: “We are not setting any account minimums, which we think unlocks a market of investors who couldn’t do this before. We see Robinhood as unlocking the microinvestor market.”

Robinhood Caught In Crossfire Of GameStop’s Now Infamous Short Squeeze

The app received more national attention recently when it got involved in the recent GameStop short-squeeze that caused hedge funds billions of dollars in losses. A short squeeze occurs when a stock or asset’s value increases significantly in a short period of time, forcing investors that took short positions to buy back their shares at much higher prices.

Robinhood was criticized for its position to suspend trading on GameStop for a few days which caused a backlash among its user base and beyond. Critics saw the once champion of the small investor siding and defending large wall street hedge funds. Despite this recent controversy, Robinhood looks set to continue its rise in the FinTech world.

CEO/Founder Investors King Ltd, a foreign exchange research analyst, contributing author on New York-based Talk Markets and Investing.com, with over a decade experience in the global financial markets.

Stock Market

U.K. And Nigerian Stock Exchange to Deepen Partnership For Growth

Published

on

Nigerian Stock Exchange

The United Kingdom (UK) and the Nigerian Stock Exchange (NSE) have reiterated their commitment to improved partnership towards the development of the Nigerian capital market and the economy.

Nigeria is the second-largest destination for investments and U.K. businesses in Sub-Saharan Africa.

Deputy British High Commissioner, Lagos, Mr. Ben Llewellyn-Jones was at the NSE, now known as Nigerian Exchange (NGX) Limited, at the weekend, as part of the efforts to deepen the relationship between the U.K. and NGX. Llewellyn-Jones was given the privilege to ring the closing bell for the market.

Llewellyn-Jones said his priority was to continue to create enabling environment for the growth of business relations between U.K. and Nigeria, especially through the Nigerian capital market.

He noted that U.K. and NSE have historically been partners, pointing out that the U.K. has continued to build on the shared history between the U.K. and the Exchange, with the U.K. still very active in the Nigerian market.

“My role is to not only celebrate that but also to grow, encourage and sustain this level of participation. Although it has been a difficult year economically and financially, I am encouraged by the resilience, creativity and positive performance of British businesses and investments here in Nigeria and I am grateful for this opportunity to talk about how much the U.K. will continue to do to support Nigeria and British businesses in Nigeria,” Llewellyn-Jones said.

Chief Executive Officer, Nigerian Exchange (NGX) Limited, Mr Temi Popoola said it was historic that the British Deputy High Commissioner was the first person to beat the closing gong since the unbundling of the NSE and the renaming of its securities trading business as NGX.

According to him, since the birth of the Lagos Stock Exchange, the British High Commission has remained a partner and supporting institution throughout its journey.

“In the spirit of continued partnership, I welcome Mr. Llewellyn-Jones to the NGX as I look forward to deepening the partnerships between both organisations to further drive sustainable economic development for Nigeria and Africa as a whole,” Popoola said.

He noted that partnerships are a critical element of the NGX’s strategy as it will continue to engage stakeholders whose support is essential to the achievement of its aspirations in the post-demutualisation period.

Continue Reading

Nigerian Stock Exchange

VFD Group Plc Receives SEC Clearance for its Proposed N4.13Billion Right Issue

Published

on

Nonso Okpala - VFD Group - investorsking.com

Lagos-based proprietary investment company, VFD Grouphas received clearance from the Securities & Exchange Commission (SEC) for the proposed right issue of 7,452,054 Ordinary Shares of 50 Kobo each at N556 per share based on 1 share for every 16 shares held.

The proposed right issue was approved by the Board of Directors at its Extraordinary General Meeting (EGM) which held on 23rd November 2020. The capital raise is part of the long-term strategic plan of VFD Group to harness the opportunities in selected companies that meet VFD Group’s Investment criteria.

The Group Managing Director/CEO, Nonso Okpala, has expressed his gratitude to the regulatory body, SEC, for the clearance, while hinting on the next phase of the business.

“Our expansion drive has been a long time coming and with this clearance, one of our immediate first steps is the enhancement of our systems, and the integration of all our subsidiary offerings under a very effective and technological platform. We are focused on expanding further within the local financial services industry as well as on the African continent,” he disclosed.

VFD Group is a proprietary investment company that focuses on building positive and socially conscious ecosystems by aggregating potentially viable business with the objective of creating innovative products and solutions that are accessible to the everyday Nigerian citizen and entrepreneur.

VFD Group Plc was founded on the values of integrity and good governance, and built on the strength of innovation and network, the goal of VFD Group is to establish a firm foothold in various ecosystems on the continent through their subsidiary companies. VFD Group operates through various portfolio to provide innovative financial services – alternative funding and investment channels – that are accessible to individuals and small businesses that provide the following services: Financial Advisory, Currency Exchange, Debt services, Private Funds Management, Asset Management, Real Estate, International Remittance/ Settlement.

Continue Reading

Nigerian Stock Exchange

Listed Companies Gained 0.16 Percent on Friday

Published

on

Nigerian Stock Exchange

Companies listed on the Nigerian Stock Exchange (NSE) gained 0.16 percent on Friday to push the All-Share Index from 38,571.89 basis points on Thursday to 38,808.01 index points on Friday.

The Exchange market capitalisation rose to N20.310 trillion with investors trading 262.510 million shares valued at N2.438 billion in 3,525 deals.

Fidelity Bank led the most traded stocks in terms of volume with 46,151,809.00 shares valued at N110,562,441.03.

This was followed by First Bank of Nigeria Holdings’ 33,985,247.00 shares worth N258,398,231.05. See the details below.

Top Trades

Symbols Volume Value
FIDELITYBK 46,151,809.00 N110,562,441.03
FBNH 33,985,247.00 N258,398,231.05
GUARANTY 33,465,217.00 N965,283,002.55
MBENEFIT 20,451,489.00 N7,049,340.54
MANSARD 14,092,168.00 N12,247,827.76

Top Losers

Symbols Last Close Current Change %Change
JAPAULGOLD N0.70 N0.63 -0.07 -10.00%
STERLNBANK N1.64 N1.48 -0.16 -9.76%
FCMB N2.92 N2.66 -0.26 -8.90%
MBENEFIT N0.37 N0.34 -0.03 -8.11%
GLAXOSMITH N6.80 N6.40 -0.40 -5.88%

Top Gainers

Symbols Volume Value
FIDELITYBK 46,151,809.00 N110,562,441.03
FBNH 33,985,247.00 N258,398,231.05
GUARANTY 33,465,217.00 N965,283,002.55
MBENEFIT 20,451,489.00 N7,049,340.54
MANSARD 14,092,168.00 N12,247,827.76

Continue Reading

Trending