eToro Reportedly Plans to Raise up to $1 Billion in Private Funding

Calcalist, an Israeli business daily and website, reports that eToro is on track to raise between $800 million and $1 billion in a private investment round as the company continues its efforts to go public.

If successful, it will be one of the largest private equity investment rounds for any Israeli technology startup. However, the worth of the funding is reportedly between $5 billion and $6 billion. It is far lower than the estimated $10,4 billion valuation of eToro and the American blank-check company.

eToro declined to disclose the funding or new valuation, however. An eToro spokeswoman told Finance Magnates, "We do not comment on market rumors."

After extensive media speculation, eToro disclosed in March 2021 its merger agreement with the blank-check company owned by Betsy Cohen, FinTech Acquisition Corp V. The deadline for the Israeli broker to complete the merger and list its shares on Nasdaq has been extended to June 30, 2022.

The Israeli company's valuation was already reduced in January. Then, its SPAC partner verified that the broker's entire valuation was reduced by more than 15 percent to $8.8 billion.

In addition, the Israeli media business noted that approximately $300 million of the SPAC acquisition will be done on the secondary market, with the proceeds going to existing eToro investors. Moreover, the future private investment round is rumored to have included secondary deals worth hundreds of millions of dollars.

eToro continues to expand its presence in the trading business. Its reliance on bitcoin offers has been a significant contributor to its success. In 2021, the amount of active users on the platform increased to 2.4 million.