eToro raises $250m at $3.5b valuation

Yoni Assia credit: eToro PR
Yoni Assia credit: eToro PR

The Israeli online trading platform has scrapped its SPAC merger and cut its valuation to just one third of its SPAC valuation.

Israeli online trading platform eToro has completed a $250 million financing round at a company valuation of $3.5 billion. Although the financing has been officially closed now, market sources believe the money from investors including SoftBank, ION Trading and Velvet Sea has already reached eToro over the past few years, through an advanced investment agreement.

eToro was one of the big beneficiaries of the Covid pandemic with online trading platforms gaining huge valuations. In eToro's most recent financing round in March 2018 when it raised $100 million, it was given a valuation of $800 million. But in 2021, eToro signed a SPAC merger deal with Betsy Cohen's FinTech Acquisition Corp V, at a company valuation of $10.5 billion, although several months late the valuation was cut to $8.8 billion and now its valuation has fallen dramatically to $3.5 billion.

eToro has also reported a fall in revenue from $972 million in 2021 to $631 million last year - similar to 2020 levels. The company expressed satisfaction with its financial performance despite the 35% drop in revenue. The reason for this is that trading activity in cryptocurrencies has decreased significantly with traders instead switching to investing in commodities such as natural gas, crude oil and gold. Commissions from trading in cryptocurrency assets accounted for 60% of the company's revenue in 2021, and last year it was reduced to only 19%. The number trading accounts as of the end of December 2022 stood at 2.8 million, up 16% from the end of 2021, and up 180% from two years ago.

eToro CFO Meron Shani said, "The range of investment products and assets that we offer our clients has contributed to revenue from stocks, ETFs and commodities partially offsetting the fall in revenue from cryptocurrencies in 2022. It is also worth noting that we have not been plagued by the liquidity concerns that have troubled many in the cryptocurrency industry. In 2022, we continued to increase our user base despite negative sentiment in the market and the reduction of our marketing expenses. Our core activity is profitable and our balance sheet is strong."

eToro's new financing round gives it a multiple of 5.5 times the revenue, higher than the 4.87 multiple that Coinbase earns from investors, but lower than the 6.3 multiple of the revenue earned by Robinhood.

Even though the company has implemented a streamlining process that included the dismissal of over 100 employees and big cuts in marketing expenses, eToro is not disclosing profitability figures. In 2021 presented a decrease in EBITDA profitability due to a significant increase in marketing budgets.

eToro was founded by CEO Yoni Assia, Ronen Assia and David Ring and in 2021 former Supervisor of Banks Hedva Bar was appointed deputy CEO and Global COO.

Yoni Assia said, "Towards the end of the first quarter of 2023, we see an improvement in total revenue and profitability compared with the last quarter of 2022, as well as an increase in the volume of trading activity among our customers. 2023 began positively when the markets responded positively to "less bad" news and trading among private investors has reached an all-time high."

Published by Globes, Israel business news - en.globes.co.il - on March 21, 2023.

© Copyright of Globes Publisher Itonut (1983) Ltd., 2023.

Yoni Assia credit: eToro PR
Yoni Assia credit: eToro PR
Forbes Rich List credit: Shutterstock Maslowski Marcin Wiz founders ranked in Forbes 2025 Rich List

There are a few dozen Israelis listed in the 2025 Forbes Real-Time Billionaires List including Wiz founders Assaf Rappaport, Yinon Costica, Roy Reznik and Ami Luttwak.

SatixFy CEO Nir Barkan credit: Ariel Barkan Canada's MDA Space to buy Israeli satcom co SatixFy

MDA Space will pay $269 million for the Israeli company, including taking on a $76 million debt and a 75% premium on SatixFy's closing price on Nasdaq yesterday.

Raising dollars credit: Shutterstock Israeli startups raised over $1b in March

Israeli privately-held tech companies have raised $2.1 billion in the first three months of 2025, according to IVC-LeumiTech, up 24% from the corresponding quarter of 2024.

Terminal 1 credit: Personal image Terminal 1 reopening revives Israel low-cost fare options

With the opening of the terminal for international flights, the Irish low-cost airline Ryanair has returned to Israel and with it, double-digit US dollar round-trip fares.

Arkady Volozh  credit: Shlomi Yosef Analysts see Israel-linked Nebius challenging CoreWeave

Nebius, founded by Yandex founder Arkady Volozh, operates in CoreWeave's AI server market, but is growing "more rationally", and has far less debt.

Bezalel Smotrich and Amir Yaron credit: Knesset Spokesperson and Tali Bogdanovsky Retail chains, credit card cos could soon act as banks

Israel's financial regulators have proposed that supermarket chains, credit card companies and investment houses will be able to accept deposits and offer credit.

Elbit Systems rocket launcher  credit: Elbit Systems Elbit Systems wins $130m European rocket order

The order is for the supply of rockets for Elbit's Precise and Universal Launching System (PULS), which has an effective range of up to 300 kilometers.

Nvidia VP Ali Kani credit: Nvidia Nvidia intensifies efforts to compete with Mobileye

"Globes" talks to Nvidia VP and automotive team head Ali Kani about the chipmaker's autonomous vehicle activities and assesses the threat to Mobileye.

Fitch ratings agency credit: Shutterstock Fitch reaffirms Israel's A rating with negative outlook

The ratings agency said, "The negative outlook reflects rising public debt, domestic political and governance challenges and uncertain prospects for the conflict in Gaza."

Tamar rig credit: PR Sovereign Wealth Fund earned handsome returns in 2024

Israel's Sovereign Wealth Fund, known as the Citizens' Fund, had assets worth about $2 billion at the end of 2024, the Ministry of Finance reports.

Fencing goes up Petah Tikva's Segula neighborhood  credit: NTA Work on Metro to begin in Petah Tikva

The first work on the Tel Aviv Metropolitan underground railways system will begin on the M2 line depot in Petah Tikva.

Startups credit: Shutterstock/NicoElNino IVC-LeumiTech: Tech fund raising jumps 24% in Q1

Israeli privately-held tech companies raised $2.13 billion in the first quarter of 2025, up 24% from the corresponding quarter of 2024, but down 12% from the preceding quarter.

Miri Regev and Yitzhak Rochberger credit: Yediot Ahronot/ Reuven Kapuchinsky and Amit Shabi Ramat Hasharon wants railway station for the Mossad

Ramat Hasharon is pushing for a station in Glilot neat the Mossad headquarters, even though a new station is also planned for Glilot South, 1.6 kilometers away.

Prime Minister Benjamin Netanyahu credit: Reuven Kastro Police call Netanyahu for testimony as aides arrested

Jonatan Urich and Eli Feldstein are being held over alleged payments received from Qatar while working in the prime minister's bureau.

Highcon chairperson Shlomo Nimrodi  credit: PR Packaging tech co Highcon winding down

The company, which numbers Benny Landa and JVP among its investors, is laying off most of its workforce, having lost 99.9% of its value since its flotation.

MK Almog Cohen  credit: Danny Shem-Tov, Knesset Spokesperson's Office Netanyahu halts Nevatim airport bill

Legislation mandating construction of an airport at Nevatim, near Beersheva, is ready for final Knesset approval, but the prime minister blocked it after a security cabinet meeting.

Twitter Facebook Linkedin RSS Newsletters גלובס Israel Business Conference 2018