Robinhood announced on Monday (1 July) that it had acquired AI-powered investment platform Pluto Capital, as trading companies race to offer AI tools and services to their customers.
The US-based trading and investment company said the deal will provide its customers with enhanced data analysis, personalised investment strategies and real-time insights and portfolio optimisation. No details about the value of the deal have been disclosed.
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Pluto founder Jacob Sansbury will also join Robinhood upon the deal’s closure to help with expanding the company’s AI offerings. Pluto, founded in 2021, raised $4m across multiple rounds which valued the company at $12m.
Robinhood rose to popularity during the Covid-19 trading boom throughout 2021. Since then, the platform has expanded into a full financial services provider and has looked to boost revenue through new product launches and acquisitions.
In June, Robinhood made its biggest-ever purchase when it aquired cryptocurrency exchange Bitstamp for around £200m.
Mayank Agarwal, VP of Engineering at Robinhood, said that Pluto has built “an impressive platform that is highly regarded in the financial services industry.”
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By GlobalData“Importantly, their expertise in AI coupled with a mission-aligned passion to democratise finance will complement our team’s effort to bring AI-powered tools to our customers,” Agarwal said in a statement.
In March, Robinhood launched in the UK after two previous failed attempts, which marked its first international expansion.
The company first attempted to launch in Britain in 2020 but was unsuccessful. In 2022, the company moved to buy UK-based trading app Zigl but made a U-turn to focus on its US business.
“As I look at retail investing in the last six to nine months, people are talking about it, whether positive or negative,” Jordan Sinclair, president of Robinhood UK
GlobalData forecasts that the overall AI market will be worth $909bn by 2030, registering a compound annual growth rate (CAGR) of 35% between 2022 and 2030.
In the GenAI space, revenues are expected to grow from $1.8bn in 2022 to $33bn in 2027 at a CAGR of 80%.
