New York: Indian-American and co-founder of popular investing app Robinhood Markets, Baiju Bhatt is among the youngest billionaires on Forbes 400 list, mainly due to the July IPO of Robinhood.
The 36-year-old Bhatt has a net worth of around $2.9 billion, which made him barely make the cut into the coveted billionaires list.
Bhatt cofounded Robinhood in 2013 with Vlad Tenev, who remains the CEO and just missed the cut for The Forbes 400. Bhatt was co-CEO of commission-free trading app Robinhood Markets until he stepped down in November 2020. He owns an 8% stake in the company, which went public at a $32 billion valuation in July.
Robinhood is known for pioneering commission-free trades of stocks and exchange-traded funds. The company’s revenue comes mainly from three main sources: interest earned on customers’ cash balances, selling order information to high-frequency traders (a practice for which the SEC opened an investigation into the company in September 2020 and margin lending. Robinhood boasts of around 31 million users.
The company has paid $135 million in fines to regulator FINRA and the SEC in the last year to settle charges of misleading customers and keeping customers locked out of their accounts during outages.
In the Forbes 400 list, at least 15 are under the age of 40 and the youngest being 29-year-old Sam Bankman-Fried, who has a net worth $22.5 billion, thanks to the rapid growth of FTX, the cryptocurrency exchange he founded two years ago in Hong Kong, and his own crypto investments. (Source: livemint.com)