Crypto and stock trading app Robinhood has acquired credit card startup X1 for $95M in cash. The acquisition deal is expected to be closed by the end of September. X1 offers credit cards based on the customer's income instead of the credit score. - The startup does not get an annual fee for the cards, charges no late or foreign transaction fees, and rewards users with points.
- The firm's offerings also include free trial and single-use credit cards.
- In a statement, Robinhood said the move is an important step to broaden its product offerings and deepen its relationship with existing customers.
- The new business within Robinhood will be overseen by X1 co-founders Deepak Rao and Siddharth Batra.
- Rao will also serve as general manager of the credit card division in Robinhood.
Robinhood already offers debit cards to its customers. - The deal has become the company's sixth acquisition within the last four years after MarketSnacks, Cove Markets, Binc, Say Technologies, and Ziglu.
- Since its launch in 2020, X1 has raised $62M in funding in total.
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