Robinhood, the popular mobile trading app, recently dropped plans to launch in the UK. The trading app offers traders the opportunity to trade in the crypto sector as well as traditional investments. Its valuation recently hit $6.8 billion after a Series F funding round.
Robinhood has been experiencing a boom in popularity in the US. Since its launch, it has racked up a huge number of users. However, the app has dropped plans to expand into the UK. According to a CNBC report, Robinhood sent a message to its UK waitlist telling them that they would not launch in the country after all.
Robinhood said that many changes have occurred globally, which have forced them to postpone their UK launch date indefinitely. A spokesperson for the company said that they would refocus all their efforts into strengthening their core business in America.
The spokesperson added that they had suspended their global expansion plans; they were still committed to the democratization of the financial world. He added that they looked forward when they could bring to the United Kingdom.
Robinhood Has Approval to Launch in the UK
Robinhood received approval from the UK FCA in the summer of 2019. They later launched their waitlist in November 2019. According to the CNBC report, the UK version of their website has been taken down. Besides that, they will delete the email addresses of the waitlist. There are also plans to move some of the 10 employees in the UK to the US while the rest will be laid off.
The past few months have been full of vicissitudes. For instance, they managed to onboard over 3 million new users by May 2020. Additionally, they secured $600 million via a Series F funding round that brought their valuation to $8.6 billion.
However, the company also struggled during the economic downturn in March. At the time, the platform went offline sometimes and users had a hard time managing their holdings. In Jun, Alexander Kearns committed suicide after he saw a $730,000 balance in his account according to a suicide letter that he left his family.
Baiju Bhatt and Vlad Tenev, the cofounders of the company, later wrote a blog post expressing condolences to the family of Kearns. Besides that, Robinhood pledge $250,000 to the American Foundation for Suicide Prevention.