eToro Gets $250 Million Financing After Canceling SPAC Listing at $10.4 Billion Valuation

03/21/2023 14:27 • Blockchain Buzz • 131 views

According to reports, after canceling the plan to list through SPAC at a valuation of $10.4 billion in 2022, the trading platform eToro obtained a financing of $250 million at a valuation of $3.5 billion. Investors include ION Group, Social Level, SoftBank, and Spark Capital.

EToro completed $250 million in financing

The popular trading platform eToro, known for its user-friendly interface and social trading features, recently made headlines after canceling its plan to list through a SPAC at a valuation of $10.4 billion in 2022. Instead, the company announced that it had secured $250 million in financing at a valuation of $3.5 billion, which comes from a group of investors, including ION Group, Social Level, SoftBank, and Spark Capital.

What is eToro?

Before we dive into the news about eToro, let’s take a closer look at what the company is all about. Founded in 2007, eToro is a trading platform that allows users to buy and sell various financial instruments, including stocks, forex, cryptocurrencies, and more. What sets eToro apart from other trading platforms is its social trading feature, which enables users to follow and copy the trades of other successful traders in the community. Additionally, eToro provides educational resources and market analysis tools to help users make informed investment decisions.

The Plan to go Public via SPAC

In March 2021, eToro announced its plan to go public through a SPAC merger with FinTech Acquisition Corp. V at a valuation of $10.4 billion. A SPAC, or Special Purpose Acquisition Company, is a shell company that raises funds through an initial public offering (IPO) with the goal of acquiring a private company and taking it public.
However, as the market conditions changed, the plan fell through. Amidst the increased scrutiny on SPACs and the volatility in the trading market, eToro backed out of the SPAC listing and postponed it until 2022.

The Recent Financing Round

Instead of going public through a SPAC, eToro opted for a private financing round, which successfully raised $250 million at a valuation of $3.5 billion. The investors include ION Group, a financial technology company; Social Level, a private investment firm; SoftBank, the Japanese multinational conglomerate; and Spark Capital, a venture capital firm.
The funds will be used to support the platform’s growth and development, including expanding its product offerings, entering new markets, and enhancing its trading infrastructure. According to sources, eToro has over 20 million registered users in more than 100 countries, making it one of the largest trading platforms in the world.

What Does This Mean for eToro?

With the recent funding and backing of some of the world’s leading investors, eToro is well-positioned for growth in the coming years. The decision to opt for private financing instead of listing through a SPAC shows that the company is cautious and strategic in how it approaches going public.
While the SPAC boom may have cooled off, eToro’s recent funding round serves as a reminder that there is still significant interest and investment in the fintech industry. As eToro continues to innovate and expand its platform’s capabilities, it will be fascinating to see where the company goes from here.

Conclusion

Ultimately, eToro’s decision to cancel its SPAC listing and secure private financing at a lower valuation reflects the uncertainties and unpredictability of the trading industry. Still, the platform’s strong user base, social trading features, and commitment to innovation make it a promising investment opportunity.

FAQs

What is eToro?

eToro is a trading platform that enables users to buy and sell various financial instruments and engage in social trading.

What is a SPAC?

A SPAC, or Special Purpose Acquisition Company, is a shell company that acquires a private company and takes it public.

Who invested in eToro’s recent funding round?

The investors in eToro’s recent funding round include ION Group, Social Level, SoftBank, and Spark Capital.

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