eToro Now Looks to $10 Billion IPO Within Weeks
This doubles its previous expectation of only $5 billion.
Yoni Assia, co-founder and CEO, eToro Doron Letzter eToro
Israeli startup eToro, which offers its clients a platform for managing their investments, is planning an IPO in the coming weeks that will give it a valuation of as much as $10 billion. The initial public offering will be held together with an SPAC, Calcalist reports. The company’s plans for an IPO were first revealed at the end of last December only back then it seemed like it would lead a valuation of just $5 billion.
In 2020 alone eToro doubled its revenue to 4500 million, becoming profitable. It also added 5 million new users last year and just celebrated reaching the milestone number of 20 million users. The increase in revenue for its investments platform is credited by analysts to the Coronavirus crisis. This may be why it has doubled in expected value in the last three months.
Another factor in the increased expectations for eToro’s IPO is obviously America’s new $1.9 trillion stimulus deal which was passed last week. Since its passage the Dow Jones and NASDAQ have both seen sharp increases. The people on Wall Street are forecasting, on average, almost 5% growth in the American economy for 2021. Goldman Sachs just declared its own forecast as being 8% growth for 2021.
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🎉🎉20M eToro users!
As we celebrate this important milestone of 20 million users, we are excited about everything that comes next. Thank you ALL for taking part in this journey with us.Thank you, our users. We cherish each and every one of you! You are what makes us great.
— eToro (@eToro) March 9, 2021
Founded in 2007 by CEO Yoni Assia and his brother Ronen Assia, eToro calls itself the world’s leading social trading network, with millions of registered users and an array of innovative trading and investment tools. The company declares its main goal is to remove barriers and make online trading and investing more accessible to the everyday user.
“Whenever people join eToro,” says the firm, “we aim to make them feel a part of the platform from the very beginning. Moreover, we realize that many people use multiple platforms to manage their capital online, which is why we are constantly expanding our product offering to eventually include all of your financial needs under one roof.”
The eToro platform and app offer a variety of financial assets in which to trade and invest and is used by people in 140 countries.
Read more about: EToro, Initial public offering, IPO
