Trading platform eToro is on the track to raising between $800 million and $1 billion in a private funding round , while the company continues its efforts to become public, according to Israeli business newspaper and website, Calcalist.
It will be one of the largest private equity funding rounds for any Israeli tech company if completed successfully. However, the funding is said to be coming at a valuation of around $5 billion and $6 billion. It is much less than the estimated $10.4 billion in the valuation of eToro and the American blank-check company.
However, eToro declined to confirm the funding or new valuation.
“We don't comment on market rumours,” an eToro spokesperson told Finance Magnates.
Becoming a Public Company
After much media speculation, eToro confirmed in March 2021 its agreement with Betsy Cohen-backed blank-check company, FinTech Acquisition Corp V, for a merger . Although, the Israeli broker missed its 2021 deadline to complete the merger and list its shares on Nasdaq, which has now been extended to June 30, 2022.
The Israeli company already witnessed a valuation cut in January. Then, its SPAC partner confirmed that there was more than a 15 percent cut in its total valuation of the broker to $8.8 billion.
Moreover, the Israeli media company pointed out that around $300 million worth of the SPAC deal will be made in the secondary market, meaning existing eToro investors will receive the proceeds. In addition, the upcoming private funding round is said to have included secondary deals valued in the hundreds of millions.
Meanwhile, eToro continues to grow its footprint in the trading industry. Its bets on cryptocurrency offerings have become a massive factor in its success. The number of active customers on the platform doubled in 2021 to 2.4 million.
Its trading income in Q4 of 2021 increased by 50 percent to $237 million. While the company ended the quarter with a net loss of $84 million due to operating expenses, its yearly EBITDA came in at $14 million.
The subject of IPOs and SPAC deals in the CFDs industry has been elaborately discussed in Finance Magnates’ Quarterly Intelligence Report for Q1 of 2022. To get the report please visit here.
