As per reports, eToro will be working with Goldman Sachs for going public. The reported plan of IPO comes after the platform registered phenomenal growth in 2020.
Israel-based crypto trading platform and multi-asset trading firm eToro is reportedly mulling for a $5 IPO in Q2 2021. Local news publication Calcalist was the first to report the news on Tuesday, December 29.
As per the report, eToro will be working with banking giant Goldman Sachs who shall be possibly leading the offering. Moreover, eToro is also considering the possibility of a merger via a special purpose acquisition company. This is likely to happen with the “purpose of accelerating entry into Wall Street trading”.
The investment management platform eToro has enjoyed strong growth this year in 2020. A large number of investors have fled to the crypto markets over the last few months. Looking at the crypto bull run of 2020, the investor-sentiment is high as more players are willing to participate in the crypto space.
Since the beginning of 2020, eToro has added 5 million new customers to its platform. Moreover, the total registered users on eToro have now reached over $17 million. Additionally, the total trading volume of eToro has tripled this year. More importantly, the company’s revenue has doubled to $500 million thereby turning profitable. The report from Calcalist further mentions:
EToro “is targeting an IPO in the second quarter of 2021 after doubling its revenue to $500 million and gaining five million new customers in 2020. The company is currently in talks with investment bank Goldman Sachs regarding leading the IPO”.
eToro to Expand Ahead of Its IPO
Following the footsteps of Robinhood, eToro made big recruitments this year as it plans to expand its operations. Currently employing nearly 1,100 people worldwide, the platform aims for more recruitments in 2021. Just like Robinhood, eToro aims at attracting the young and millennial population to its platform.
Besides, eToro has taken several initiatives over the last few months to expand its crypto offerings. In September 2020, the platform launched a new project GoodDollar, a form of stablecoin, and distribute it to people as universal basic income. The eToro team said that the stablecoin project will help to unlock more opportunities for economic growth.
However, eToro is not the only crypto exchange willing to go for an IPO. A few days back, crypto exchange Coinbase applied for an IPO with the US SEC wherein Goldman Sachs is likely to be leading the entire process.
Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.
