eToro Adjusted its Valuation to $2.5 billion for Secondary Stock Sales

In a significant financial move, eToro, the globally recognized broker headquartered in Israel, has witnessed a substantial secondary share sale where current and former employees and initial investors have successfully transacted $120 million worth of shares to a group of existing securities investors.

eToro, although not directly involved in this sale and refraining from issuing new shares, will not partake in the proceeds generated from this stock transaction.

eToro attributes its substantial growth over the past year to heightened interest from global investors. Notably, the purchasers of these shares happen to be eToro's two largest shareholders, who had previously participated in a funding round.

They intend to bolster their ownership stake in the company. This development, as per reports from Calcalist, has propelled the valuation of this FCA-licensed broker to surpass $2.5 billion in the secondary market, primarily due to the recent stock sale.

Earlier in March, eToro successfully concluded its latest funding round, securing $250 million at an impressive valuation of $3.5 billion. The fundraising efforts were spearheaded by ION Group and SoftBank's Vision Fund 2, with the active participation of Velvet Sea Ventures and several other existing investors.

It's worth noting that eToro had previously planned a merger with Fintech Acquisition Corporation, backed by Betsy Cohen, with the potential to reach a valuation exceeding $10 billion upon listing.

However, a recent stock and cryptocurrency price downturn has led to reduced trading activity among retail brokers, including eToro. As a result, eToro has decided to forgo its plans for a public listing, even after successfully revising the SPAC's valuation from the initial estimate of around $10.4 billion to $8.8 billion.