eToro, the stock brokerage platform, has piqued the interest of bankers and investors regarding a potential listing on the public market.
This revelation comes after the company’s CEO, Yoni Assia, disclosed that eToro had abandoned plans to go public through a merger with a blank-check company, in an interview with CNBC.
Assia expressed eToro’s keenness to venture into the public markets, affirming, “I definitely see us becoming eventually a public company.”
While the timing of the listing remains under evaluation, Assia stressed eToro’s strong relationships with exchanges, particularly highlighting its ties with the Nasdaq stock exchange.
With 35.5 million registered users and over 3 million funded accounts, eToro reported revenues of $630 million in 2023, closely mirroring its 2022 figures.
Notably, the company disclosed over $100 million in EBITDA for 2023, demonstrating a robust margin for a retail brokerage business.
The brokerage platform primarily relies on trading fees and non-trading activities for revenue generation.
Additionally, eToro revealed its acquisition of Deep, a company specialising in content automation, indicating its strategic focus on harnessing AI technologies in content and marketing endeavours.
In his discussion with CNBC, Assia underscored eToro’s commitment to integrating AI into its product experience, particularly in investing and trading functionalities.
He highlighted the significance of AI-related stocks among eToro’s user base, citing growing interest in AI-driven innovations such as ChatGPT developed by Microsoft-backed OpenAI.
Reflecting on eToro’s initial plans for a SPAC merger, Assia acknowledged the valuable lessons learnt from the experience.
Despite the setback, eToro successfully secured $250 million in funding in March 2023, backed by SoftBank Vision Fund 2, ION Investment Group, and Velvet Sea Ventures.
The financial technology sector has encountered challenges in recent years, influenced by fluctuating interest rates and market dynamics.
However, Assia remains optimistic about the prospects for 2024, anticipating improved market conditions amid potential interest rate adjustments by the US Federal Reserve.