eToro, a competitor to Robinhood (HOOD, Financial), is planning to go public with a target valuation of $5 billion. The company is collaborating with Goldman Sachs for its initial public offering (IPO) in the U.S., potentially as early as the second quarter of next year, though the timeline may change. Founded in 2007, eToro's platform enables users to trade stocks and cryptocurrencies and follow top investors. It boasts over 38 million registered users from 75 countries.
Previously, eToro attempted to go public via a merger with a special purpose acquisition company (SPAC) led by Betsy Cohen, aiming for a $10.4 billion valuation, but the deal was mutually terminated in 2022. Last year, eToro raised $250 million, boosting its valuation to $3.5 billion, with investors like ION Group and SoftBank Vision Fund II. The company also reported a core profit of $107 million last year, a significant turnaround from the previous year's $40 million loss.
eToro has faced regulatory issues, agreeing to pay $1.5 million in September to settle with the U.S. Securities and Exchange Commission (SEC) over allegations of operating an unregistered broker and clearing agency.
