According to a recent report, online trading platform ‘Robinhood‘ has appointed Jason Warnick as its first chief financial officer. Warnick has worked with Amazon for 2 decades as Amazon’s VP of finance and chief of staff to CFO Brain Olsavsky. The recruitment is a part of the company’s long-term plans, as explained by the platform co-CEO Baiju Bhatt in September 2018.
Robinhood is planning to launch an initial public offering (IPO) and the recent development has just added a support to its plans with IPO. The revelation of appointing Warnick as the chief financial officer was made by Robinhood through the company blog post. The appointment was pre-planned as informed by Bhatt. The move, in fact, comes after Airbnb Inc appointed Dave Stephenson the CFO of Amazon’s worldwide consumer business, on 26th November.
The company is planning to go public as its executive believe that the going public is crucial for the future developments, said Bhatt during the TechCrunch Disrupt conference held in San Francisco, US. He further said that the company may take some time to launch its IPO as there are no such immediate plans to launch in the near future.
Warnick had been working with Amazon since 1999. Commenting on his recent appointment, Warnick said that he is excited to join Robinhood and will work steadily towards the company’s goal to democratize America’s financial system. Warnick will resume office at Robinhood next week, according to a blog post.
Robinhood has gained a name in the trading industry primarily for its no-cost trading platform rolled out nearly three years back. The platform is used by people belonging to the age group of 18-35. The company also offers ETFs, cryptocurrency trading, as well as other similar options. Last month, the company unveiled a clearing system that enables Robinhood to clear and settle transactions as well provide custody for assets.
The company this year reported skyrocket growth of its brokerage account. The total brokerage account reportedly rose to 6 million in October, which is up from 5 million in August and 4 million in May, as per the company’s statement.
Robinhood managed to gather $363 million in the latest fundraising round which saw the participation of Capital G, DST Global, Iconiq, and Sequoia. The funding round boosted the valuation of the company to $5.6 billion. There are reports of large financial institutions such as JP Morgan of moving to the no-cost territory. Robinhood executives said that the company is rather planning to expand into the territory of the financial institutions.
Commenting on the company’s future plan, Robinhood Co-CEO Vlad Tenev said that the company is envisioning taking up the role of full-service financial services firm in the coming years, reported CNBC in August. Robinhood has a customer base of about 6 million customers. It is, in fact, among one of the most promising fintech company valuing at $5.6 billion.