eToro targeting IPO at over $3.5 billion valuation after surge in activity

Trading platform eToro is aiming to go public at a valuation of more than $3.5 billion, CEO Yoni Assia has told the Financial Times. The Israel-based brokerage is weighing an IPO in either New York or London, with Assia telling the FT that “We’re seeing levels of activity that we haven’t seen since 2021.”

According to the article, eToro manages $11.3 billion of customer assets across 3 million accounts.

eToro.

The company’s valuation has taken a nosedive since its first attempt to go public in 2021 when it agreed a $10.4 billion merger with a SPAC, which ultimately fell through.

However, the valuation Assia is targeting is still higher than that registered in secondary transactions last year. Current and former employees, as well as early investors in the company, completed a large secondary deal in which they sold $120 million worth of shares last summer. According to estimates, the transaction was carried out at a company valuation of $2.5 billion, similar to eToro's value in a previous secondary transaction in 2020, and about a quarter of the value the company planned to acheive in a Wall Street in 2021.

The buyers were two of the company's largest shareholders who participated in eToro's last funding round and wanted to increase their holdings in the company. eToro was not a party in the transaction and did not receive any of the money.

eToro, which has developed a social investment platform, completed its last funding round in March of 2023, raising $250 million at a $3.5 billion valuation. The founding round was led by ION Group and Softbank's Vision Fund 2, and included participation by Velvet Sea Ventures, and a number of other existing investors.