eToro Reportedly Planning $5 Billion IPO with Goldman Sachs

eToro to Potentially Go Public with a $5 Billion Valuation

eToro, the Israel-based brokerage and leading social trading platform, is reportedly in discussions with Goldman Sachs to launch an Initial Public Offering (IPO). According to a report from Calcalist, the IPO could value the company at an estimated $5 billion, with the filing expected in the second quarter of 2021.

Additionally, eToro is exploring a potential merger with a special purpose acquisition company (SPAC) listed on Nasdaq as part of its path to going public.

A Year of Growth for eToro

The news of the potential IPO follows a year of exceptional growth for eToro:

1. Revenue Surge:
   • eToro doubled its annual revenue in 2020, reaching $500 million.
2. New Customers:
   • The platform gained 5 million new users during the year.
3. Unicorn Status:
   • eToro’s valuation skyrocketed after a U.S. institutional investor purchased $50 million worth of shares on the secondary market, valuing the company at $2.5 billion.

Speculation Around the IPO

While the news of eToro’s IPO is exciting, it remains speculative:

• No Official Announcement:
  • eToro has not confirmed or commented on the IPO reports.
• Market Trends:
  • The report emerges amid growing interest in retail trading platforms, fueled by the COVID-19 pandemic and increased trading activity.

Current Platform Activity:

• eToro reportedly executes over 15 million trades daily and has a user base of 17 million registered users across 140+ countries.

What is eToro?

Founded in 2007, eToro is a social trading network that allows users to replicate the trading strategies of experienced investors.

Key Highlights:

• Offers a wide range of asset classes, including stocks, ETFs, commodities, and cryptocurrencies.
• Completed five funding rounds, raising a total of $162 million:
  • The 2018 funding round alone raised $100 million, valuing the company at $800 million.

Cryptocurrency Focus:

eToro has made significant investments to expand its cryptocurrency offerings, capitalizing on the growing demand for Bitcoin and other digital assets.

Comparison with Robinhood

eToro’s IPO plans coincide with rumors of Robinhood, the U.S.-based stock trading platform, preparing to go public with a valuation of $20 billion in 2021. Both companies have benefited from a surge in retail trading during the pandemic, with cryptocurrencies playing a key role in their growth.

Conclusion

The potential IPO of eToro highlights the rapid growth and increasing relevance of social trading platforms in the financial and cryptocurrency markets. If confirmed, the IPO could strengthen eToro’s position as a global leader in retail trading while underscoring the rising interest in cryptocurrencies and digital financial platforms.

To learn more about the innovative startups shaping the future of the crypto industry, explore our article on latest news, where we delve into the most promising ventures and their potential to disrupt traditional industries.