After SPAC Failure, eToro Returns With IPO Ambitions

eToro makes its entry into the big leagues. The social trading platform, a symbol of the democratization of investment, has officially launched its IPO process in the United States. In a market where tech IPOs are regaining strength, this strategic operation marks eToro’s ambition to consolidate its global presence and compete with American online brokerage giants.

An entry on the Nasdaq driven by spectacular financial results

On Monday, March 25, eToro submitted an official request to the SEC to be listed on the Nasdaq under the symbol “ETOR”. This decision is based on strong financial results in 2024. Here are the key points regarding the company’s performance:

• Revenue of $931 million, up from $639 million in 2023 ;
• A net profit of $192 million, compared to $15 million the previous year ;
• 38 % of the revenues come from crypto trading, compared to 17% in 2023 ;
• A growth in the number of active users, which today reached 33 million registered customers ;
• An increase in engagement in the stock and ETF markets within the platform.

In the submitted documents, eToro attributes this growth to the resurgence of crypto trading, which “reflects the renewed appetite of clients for this asset class,” as mentioned in its filing with the SEC.

The platform’s activity in 2024 has also been boosted by the popularity of its commission model on transactions, as well as its copy-trading functionality and educational products.

These figures provide a strong argument for the company to attract Nasdaq investors, following a failed attempt at a SPAC listing in 2021.

The IPO : a tool for conquering the American market

Beyond performance, this IPO fits into a long-term strategy. After the failed merger with SPAC FinTech Acquisition Corp. V in 2021, which valued the company at $10.4 billion, eToro returns with measured but assertive ambitions.

According to sources close to the matter, the company aims for a valuation between $3.5 billion and $5 billion for this IPO, well below past valuations, but in line with current market conditions.

“We have strengthened our resilience and expanded our offer over the past two years,” eToro stated in its communications, without providing a specific timeline for the listing.

This choice to turn to the Nasdaq comes as the market for tech IPOs seems to be restarting. Many startups, especially in the decentralized finance and artificial intelligence sectors, are also considering going public this year.

For eToro, this operation could strengthen its position in the American market, where it faces established players like Robinhood and Coinbase. However, the company will need to demonstrate its ability to grow in an increasingly demanding regulatory environment, particularly concerning cryptos.

The success of this IPO could pave the way for a new phase of international expansion for eToro, but it will not be without risks. Thus, market volatility, the expectations of institutional investors, and U.S. regulations represent significant challenges to overcome. The success of this operation will largely depend on eToro’s ability to articulate a clear and convincing vision that matches its ambitions on the stock market.