Investment Platform Acorns Calls Off IPO with Pioneer SPAC

Acorns

Investing and checking account platform Acorns Grow Inc. is calling off its $2.2 billion initial public offering (IPO) with special purpose acquisition company (SPAC) Pioneer Merger Corp.

“We really appreciate the partnership with Pioneer. They exceeded expectations and helped make Acorns public-company ready,” Acorns CEO Noah Kerner said in a statement, Bloomberg reported on Tuesday (Jan. 18).

Kerner added that the SPAC deal was scrapped because of market conditions and the startup is weighing a conventional IPO.

See also: Acorns Preps for IPO by Naming David Hijirida President

Founded in 2014 and headquartered in Irvine, California, Acorns enables people to round up purchases and use that spare change for investing in exchange-traded funds. Users also can invest additional cash directly with Acorns. The startup offers checking accounts, retirement savings and debit cards.

Acorns has more than eight million users, according to its website. It provides over 55,000 fee-free ATMs and the option to get paid up to two days early with direct deposit into Acorns Checking.

Read more: Acorns Names Twitter’s Rich Sullivan As New CFO

“Acorns has exceeded its public forecast, crossed 4.6 million paid subscribers and helped everyday Americans save and invest over $12.5 billion to date,” Rich Sullivan, Acorns CFO, said in a statement.

The canceled IPO by Acorns and Pioneer is one of many axed SPAC mergers, including the online gambling unit of Wynn Resorts, grill-maker BBQGuys, and software firm ServiceMax.

Acorns is planning to launch Customizable Portfolios sometime in 2022 that will enable direct investing with small dollar amounts in individual stocks, a move that’s in direct competition with platforms like Robinhood, E*Trade and Fidelity, according to the report.