- Social trading platform eToro has confidentially filed to go public in the U.S. later this year.
- The IPO potentially values eToro at over $5 billion, marking its second attempt at a public debut after a failed SPAC deal in 2022.
- eToro’s IPO aligns with a renewed optimism in fintech, dubbed “fintech spring,” as companies like Klarna also signal plans to go public, signaling a resurgence in confidence and investment.
Social trading and investment network eToro is taking its multi-asset trading platform to the public markets. According to a report from The Financial Times, eToro confidentially filed a U.S. IPO later this year.
The IPO, which could value eToro at over $5 billion, won’t count as the company’s first attempt at going public. In 2021, eToro announced plans to merge with FinTech Acquisition Corp. V, a publicly-traded special purpose acquisition company (SPAC), in a deal worth $10 billion. The deal would have listed eToro on the NASDAQ, but the two parties agreed to end the deal after eToro’s valuation was cut by 15% in 2022, and the company failed to go public by the deadline specified in the SPAC arrangement.
By March 2023, eToro raised $250 million at a $3 million valuation. “Our 2023 to 2025 strategy focuses on scaling our brokerage business in our key markets and increasing profitability via revenue growth and cost management,” said company Founder and CEO Yoni Assia at the time of the fundraising. “eToro will continue to focus on profitable growth while helping to drive progress towards a world where everyone can invest in a simple and transparent way.”
Since that time, eToro launched $Cashtags on what was then Twitter, announced it would pay interest on users’ idle cash, and began publishing educational content on X.
eToro was founded in 2007 and has since raised $693 million in funding. With more than 35 million registered users and investors on its trading and investing platform, the company offers trading and investing tools more accessible and collaborative. eToro launched in the U.S. market in 2019, entering a space where Robinhood had already established a six-year presence.
The IPO filing announcement comes as fintech is entering what analysts are calling “fintech spring,” a hopeful time during which investors are more willing to invest and organizations are more willing to take risks. Many predicted that 2025 would see a lot of fintech IPOs. Klarna kicked things off, announcing last November that it is planning a 2025 IPO.
Photo by George Morina
Views: 11
