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

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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.

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Nigerian Stock Exchange

Stock Investors Gained N25 Billion on Wednesday

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Stock bull - Investors King

Investors that invested in the Nigerian Exchange Limited (NGX) gained N25 billion on Wednesday as more stocks closed in the green.

Investors traded 141,407,914 shares valued at N2.973 billion in 3,079 transactions during the trading hours of Wednesday, contrast to 228,479,010 shares valued at N1.879 billion that exchanged hands in 3,376 deals on Tuesday.

Market value grew by N25 billion from N20.278 trillion it closed on Tuesday to N20.303 trillion on Wednesday,  while the NGX All-Share Index appreciated by 0.12 percent to 38,968.34 index points, up from 38,920.5 index points.

UPDC Plc led gainers for second consecutive day with N0.16 or 9.64 percent to close at N1.82 per share. While N Nig. Flour Mills Plc followed with N0.70 or 9.59 percent to settle at N8 a unit. See the details below.

Top Gainers 

Symbols Last Close Current Change %Change
UPDC N 1.66 N 1.82 0.16 9.64 %
NNFM N 7.30 N 8.00 0.70 9.59 %
OANDO N 4.35 N 4.62 0.27 6.21 %
LEARNAFRCA N 1.36 N 1.44 0.08 5.88 %
HONYFLOUR N 3.92 N 4.07 0.15 3.83 %

Top Losers 

Symbols Last Close Current Change %Change
TRANSCOHOT N 5.00 N 4.50 -0.50 -10.00 %
CHIPLC N 0.53 N 0.48 -0.05 -9.43 %
PRESTIGE N 0.48 N 0.44 -0.04 -8.33 %
CHAMPION N 2.08 N 1.91 -0.17 -8.17 %
LASACO N 1.30 N 1.20 -0.10 -7.69 %

Top Trades

Symbols Volume Value
UNIVINSURE 17987052.00 3597410.40
ZENITHBANK 9711718.00 229355692.90
UCAP 9341841.00 76221425.25
TRANSCORP 9082603.00 8286258.24
ACCESS 9023766.00 83787940.10

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Bonds

Investors Oversubscribed for Access Bank US$500 Million Senior Unsecured Eurobond

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Eurobonds - Investorsking

Access Bank Plc strong financial position has continued to attract global investors to the bank’s financial instruments despite the ongoing global challenges and limitations.

Investors oversubscribed for the bank’s $500 million Senior Unsecured Eurobond issued under Access Bank’s $1.5 billion Global Medium-Term Note Programme. The lender offering received over three times oversubscribed orderbook of over $1.6 billion, the largest orderbook for a Nigerian bank Eurobond.

According to a statement signed by Sunday Ekwochi, the bank’s secretary and seen by Investors King the fund will help enhance the capacity of the Bank to support its general banking process and provide medium term funding for the lender.

The Senior Eurobond is a 5-year unsecured note (144A/RegS) is listed on London Stock Exchange and it will mature in September 2026 with a yield and coupon rate of 6.12 percent. The interest is payable semi-annually in arrears.

Speaking on the success of the Eurobond, Herbert Wigwe, Group Managing Director, said: “At Access Bank we remain committed to our vision to become the World’s Most Respected African Bank and Africa’s Gateway to the World. The success of our USS500 milion Senior Unsecured Eurobond is yet another stride towards the realisation of that vision and underscores our investors confidence in the Access Bank story. We are pleased with the diversity of the order book and the success of this issuance further strengthens our resolve to deliver on our strategic objectives”.

Absa, Barclays Bank, JP Morgan and Standard Chartered acted as Joint Bookrunners on the transaction; and Chapel Hll Denham and Rand Merchant Bank acted as Financial Advisors and Joint Bookrunners.

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Nigerian Stock Exchange

Nigerian Exchange Limited Closes Slightly in Green on Tuesday Following Weeks of Bearish Trend

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Nigerian Exchange Limited - Investors King

The Nigerian Exchange Limited (NGX) rebounded slightly from bearish trends on Tuesday as investors gained N2 billion after weeks of trading in the red.

Market value of all stocks rose to N20.278 trillion on Tuesday, up by N2 billion from N20.276 trillion recorded on Monday. While the NGX All-Share Index gained 0.01 to close at 38,920.5 index points from 38,915.62 index points it settled on Monday.

Investors transacted 228,479,010 shares valued at N1.879 billion in 3,376 deals during the trading hours of Tuesday, against 201,103,282 shares worth N2.526 billion that exchanged hands in 3,340 transactions on Monday.

UPDC Plc led gainers with N0.15 or 9.93 percent to close the day at N1.66 a share while Academy Press Plc followed with N0.03 or 8.33 gain to settle at N0.39 a unit.

Investors renewed interest in Wema Bank as a total of 46,760,667.00 shares valued at N35,973,004.78 were traded during on Tuesday. Access Bank came second with 28239839.00 shares worth N263,494,888.05

Top Gainers

Symbols Last Close Current Change %Change
UPDC N 1.51 N 1.66 0.15 9.93 %
ACADEMY N 0.36 N 0.39 0.03 8.33 %
COURTVILLE N 0.27 N 0.29 0.02 7.41 %
VITAFOAM N 16.75 N 17.40 0.65 3.88 %
LIVESTOCK N 2.08 N 2.14 0.06 2.88 %

Top Losers 

Symbols Last Close Current Change %Change
SOVRENINS N 0.27 N 0.25 -0.02 -7.41 %
UPL N 1.09 N 1.02 -0.07 -6.42 %
REGALINS N 0.48 N 0.45 -0.03 -6.25 %
UACN N 10.30 N 9.80 -0.50 -4.85 %
CHAMS N 0.22 N 0.21 -0.01 -4.55 %

Top Trades

Symbols Volume Value
WEMABANK 46760667.00 35973004.78
ACCESS 28239839.00 263494888.05
UBA 17767249.00 135078503.15
MBENEFIT 17243869.00 4879080.30
FIDELITYBK 14799631.00 36065747.39

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