eToro raises $250m at $3.5bn

EToro, the social investing platform, has successfully raised $250 million at a valuation of $3.5 billion. New investors in the funding round included SoftBank Vision Fund 2, ION Group, and Velvet Sea Ventures, along with several existing investors. The funding was secured through an Advance Investment Agreement (AIA) that eToro entered into in February 2021 to protect itself against the potential failure of its proposed SPAC merger.

The proposed merger agreement with FinTech Acquisition Corp V was mutually terminated in the summer of 2021. In March 2021, eToro announced its intentions to go public, and the reports were made public in January of the same year.

eToro revealed the funding along with its full-year financial results, demonstrating the continued growth of its multi-asset product offerings. Despite the market volatility, commissions from equities and commodities partially offset the decrease in commissions from cryptoassets in 2022. The firm’s total commissions for 2022 were $631 million, down from its impressive performance in 2021, yet up 5% versus 2020. The platform continued to grow its user base, with over 2.8 million funded accounts, up 17% year-over-year.

Last year, eToro acquired Gatsby, the options trading platform, for $50 million, and portfolio management tools provider Bullsheet. The funding will enable eToro to continue to expand its offerings and add to its existing portfolio of products.