Shares in the Menlo Park-based company were up 2.9% at $23.39 in extended trading.
Robinhood said it had been under a contractual obligation to let those early shareholders exit some of their stake but was now seeking a termination as the obligation had expired.
In a regulatory filing in August, Robinhood had registered for the sale of nearly 98 million shares by early shareholders including ICONIQ Capital and Index Ventures, and noted that it would not receive any of the proceeds.
That had angered some retail investors, who groused in online forums such as Reddit's WallStreetBets.
(Reporting by Niket Nishant in Bengaluru; Editing by Ramakrishnan M.)