Online investment platform eToro is set to go public via a merger with blank cheque company FinTech Acquisition Corp that will value the business at about $10.4 billion.
The latest high profile fintech Spac deal will see eToro list on Nasdaq and includes commitments for a $650 million common share private placement from a host of blue chop investors.
Founded in 2007 as a "social investment network" with the aim of opening up capital markets to the masses, eToro lets users trade a host of assets, from fractional equities to crypto. Users can trade directly themselves, invest in a smart portfolio, or replicate the strategy of successful investors on the platform.
Like other trading platforms such as Robinhood, the company has seen business boom during the pandemic, adding over five million registered users in 2020 and generating gross revenues of $605 million, up 147% on the previous year.
Yoni Assia, CEO, eToro, says: “We created a new category of wealth management - social investing - and we are dominating the market as evidenced by our rapid expansion.”