By George Ward
According to reports, crypto-focused neo-bank Ziglu is in talks with potential buyers interested in purchasing it at a reduced price after its acquisition deal with Robinhood fell through. The London company is reportedly deliberating with several parties that have shown interest and have hired some investment advisers to oversee the sale.
Additionally, Ziglu seeks to raise approximately $2.46 million to continue its operation until the firm’s sale is completed. Previously, Robinhood (one of the top digital asset platforms in the US) had agreed to purchase Ziglu for $170 million.
The purchase would have been a means for the brokerage from the US to obtain a full operational license from the appropriate authorities in the United Kingdom. However, Robinhood reduced its offer to nearly $73 million last August, and the offer subsequently fell apart.
Ziglu CEO Steps Down
Last month, Mark Hipperson, the CEO and founder of Ziglu resigned; he announced the news via LinkedIn. However, he stated his support for the firm would continue as a director and shareholder.
Hipperson founded the crypto platform in 2018 and launched its fully-authorized and fully-regulated banking services firm by June 2020. The banking service firm was one of the first ever companies to complete Financial Conduct Authority registration as a cryptocurrency-asset firm.
Hipperson founded Ziglu some years after starting Starling Bank. At the bank, he worked as the second CTO.
He left Starling Bank after it received its banking license to start Ziglu. Hipperson expressed that being a founder meant it was challenging to step back from a venture that one built from scratch.
Nevertheless, he believes it is the right time to take a break and explore new opportunities. According to his statement, Ziglu is one of a few firms in the EU and UK to have acquired certification and licensing for cryptocurrency and banking services, along with its proprietary technology.
He noted that the company has a highly skilled team and supportive board, indicating they will continue to create innovative products for the fintech market. Hipperson’s LinkedIn profile reveals that he changed his role from chief executive officer to non-executive director in January this year.
Hipperson stated that he is proud of what he and the team behind Ziglu have achieved so far, despite the Robinhood deal failure. He also expressed confidence that Ziglu is poised for long-term success in the industry.