EToro, an Israeli-based global investment platform, has announced that it has secured $250 million at a post-money valuation of $3.5 billion, after scrapping its plan to launch a Special Purpose Acquisition Company (SPAC).
The $250 million raised will be used to help drive eToro’s international expansion, accelerate product innovation and develop its asset management business. An additional $50 million target raise is also included, with a potential upsize of $100 million, depending on the promoters’ activity in the first year.
eToro had originally planned to go public via a SPAC listing in the second half of 2020, but the company announced in September 2020 that it had dropped the plans, citing a need to focus on eToro’s long-term strategy.
Instead, the Israeli firm pursued a traditional venture capital round led byChina’s Tencent, Spark Capital and UK-based Level Equity, with participation from existing investors, including Stripes Group and LBV Partners, among others.
eToro said the investment will help it bolster its range of features, with a focus on the upcoming launch of its digital banking platform, as well as boosting the platform’s international expansion. The company is expecting to launch the digital banking platform, which includes a payments and debit card, in Q2 2021. eToro also plans to offer investment products and services in the UK, Australia and the US.
The funding is a crucial milestone for eToro, which has seen its growth slow in the last few years due to increased competition from challenger banks and roboadvisors, as well as regulatory issues. The new funding will enable the company to build its foundation for future growth and stability.
eToro has seen massive success in the last few years, with its user base more than doubling over the past three years. With over 18 million registered users across more than 140 countries, it is one of the largest global investment platforms.
eToro’s securing of $250 million in venture capital and its $3.5 billion post-money valuation is a strong sign for the company’s future and its ability to sustain its growth and success.