eToro Considers Public Listing after Scrapping SPAC Merger Plans

by Tareq Sikder
  • The firm has forged strong relationships with exchanges, particularly with the Nasdaq.
  • Despite the setback of its SPAC merger plans, the firm secured $250 million in funding.
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eToro, the stock brokerage platform, is attracting interest from bankers and investors regarding a potential public market listing. This announcement follows the company's decision to abandon its plans to go public through a merger with a blank-check company, revealed the CEO of eToro, Yoni Assia, in an interview with CNBC.

AI Integration: Transforming the Trading Experience

Assia expressed eToro's keen interest in entering the public markets: "I definitely see us becoming eventually a public company." While the timing of the listing remains under evaluation, Assia emphasized that eToro has fostered strong relationships with exchanges, particularly highlighting its ties with the Nasdaq stock exchange.

eToro, which boasts 35.5 million registered users and over 3 million funded accounts, reported revenues of $630 million in 2023, closely aligning with its 2022 figures. Impressively, the company disclosed over $100 million in EBITDA for 2023, showcasing a robust margin for a retail brokerage business.

Yoni Assia, CEO, eToro
Yoni Assia, CEO, eToro

The brokerage platform relies primarily on trading fees and non-trading activities for its revenue generation. Additionally, eToro disclosed its acquisition of Deep, a company specializing in content automation, indicating its strategic focus on leveraging AI technologies in content and marketing endeavors.

During his conversation with CNBC, Assia emphasized eToro's commitment to integrating AI into its product experience, particularly in investing and trading functionalities. He noted the significance of AI-related stocks among eToro's user base, citing a growing interest in AI-driven innovations such as ChatGPT developed by Microsoft-backed OpenAI.

Securing Funding and Weathering Market Dynamics

Reflecting on eToro's initial plans for a SPAC merger, Assia acknowledged the valuable learnings garnered from the experience. Despite the setback, eToro successfully secured $250 million in funding in March 2023, supported by SoftBank Vision Fund 2, ION Investment Group, and Velvet Sea Ventures.

The financial technology sector has faced challenges in recent years, influenced by fluctuating interest rates and market dynamics. However, Assia remains optimistic about the prospects for 2024, anticipating improved market conditions amid potential interest rate adjustments by the US Federal Reserve.

eToro, the stock brokerage platform, is attracting interest from bankers and investors regarding a potential public market listing. This announcement follows the company's decision to abandon its plans to go public through a merger with a blank-check company, revealed the CEO of eToro, Yoni Assia, in an interview with CNBC.

AI Integration: Transforming the Trading Experience

Assia expressed eToro's keen interest in entering the public markets: "I definitely see us becoming eventually a public company." While the timing of the listing remains under evaluation, Assia emphasized that eToro has fostered strong relationships with exchanges, particularly highlighting its ties with the Nasdaq stock exchange.

eToro, which boasts 35.5 million registered users and over 3 million funded accounts, reported revenues of $630 million in 2023, closely aligning with its 2022 figures. Impressively, the company disclosed over $100 million in EBITDA for 2023, showcasing a robust margin for a retail brokerage business.

Yoni Assia, CEO, eToro
Yoni Assia, CEO, eToro

The brokerage platform relies primarily on trading fees and non-trading activities for its revenue generation. Additionally, eToro disclosed its acquisition of Deep, a company specializing in content automation, indicating its strategic focus on leveraging AI technologies in content and marketing endeavors.

During his conversation with CNBC, Assia emphasized eToro's commitment to integrating AI into its product experience, particularly in investing and trading functionalities. He noted the significance of AI-related stocks among eToro's user base, citing a growing interest in AI-driven innovations such as ChatGPT developed by Microsoft-backed OpenAI.

Securing Funding and Weathering Market Dynamics

Reflecting on eToro's initial plans for a SPAC merger, Assia acknowledged the valuable learnings garnered from the experience. Despite the setback, eToro successfully secured $250 million in funding in March 2023, supported by SoftBank Vision Fund 2, ION Investment Group, and Velvet Sea Ventures.

The financial technology sector has faced challenges in recent years, influenced by fluctuating interest rates and market dynamics. However, Assia remains optimistic about the prospects for 2024, anticipating improved market conditions amid potential interest rate adjustments by the US Federal Reserve.

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