Robinhood said Tuesday it is purchasing Ziglu — a London-based fintech app — that enables users to exchange Bitcoin and several other cryptos. The acquisition represents the continuous effort of the company to expand in the U.K. and Europe, the company said.
The announcement came two years after Robinhood ditched its plans to launch in the U.K. Back then, the exchange firm said it was focused on its business at home over international expansion.
Shares of Robinhood surged more than 5% Tuesday.
Robinhood reported a decline in monthly active users in the fourth quarter of 2021 — to 17.3 million from 18.9 million in the previous quarter — and said it expects first-quarter 2022 revenue of less than $340 million, down 35% from the year-earlier period. The company has lost roughly two-thirds of its market value since debuting on the Nasdaq last summer
Vlad Tenev, Robinhood’s CEO and co-founder, said the purchase of Ziglu “will help us accelerate our global expansion efforts.”
“Together with the Ziglu team, we’ll work to leverage the best of both companies, exploring new ways to innovate and break down barriers for customers across the UK and Europe,” Tenev said in a blog post.
Mark Hipperson, Ziglu’s CEO, was previously a co-founder of British digital bank Starling. Ziglu and Robinhood “share a common set of goals,” he said.
“As part of Robinhood, we’ll supercharge Robinhood’s expansion across Europe and bring better access to crypto and its benefits to millions more customers,” Hipperson said.