Robinhood Will Acquire Fintech Startup X1

Online brokerage firm Robinhood has made a deal to purchase the X1 platform — which provides a free subscription-based Metal Credit Card — for an estimated $95 million.

The card carries no annual fees, international fees, or late fees and is accompanied by a mobile application.

According to the terms of the agreement, Deepak Rao and Siddharth Batra — the co-founders of X1 — will join the Robinhood team and will manage the company’s new credit card department with Rao reporting to Robinhood CEO, Vlad Tenev.

JP Morgan Securities was the financial advisor for the deal, which is expected to close in the third quarter of 2023.

Once the transaction is complete, Philip Morgan’s firm will pay for it using cash. The Metal Credit Card brought in $50 million in sales monthly and had 500,000 users who were on the waiting list at the time.

Additionally, according to an update on the X1 website, the startup raised more than $45 million in funding in July 2022.