eToro enters business combination agreement with FinTech Acquisition Corp. V to become a publicly traded company
By Pavithra R
eToro, a global leader of social trading, has announced entering into a definitive business combination agreement with FinTech Acquisition Corp. V, a publicly-traded special purpose acquisition company.
Under the agreement, upon closing of the transaction, the combined company will operate as eToro Group Ltd. and is expected to be listed on NASDAQ.
eToro was founded in 2007 with the vision of opening the global markets so that everyone can invest in a simple and transparent way. The eToro platform enables people to invest in the assets they want, from stocks and commodities to cryptoassets. Users can trade directly themselves, invest in a smart portfolio, or replicate the investment strategy of successful investors on the platform at additional cost with the simple click of a button.
“We founded eToro with the vision of opening the global market for everyone to trade and invest in a simple and transparent way. Today, eToro is the world’s leading social investment network. Our users come to eToro to invest, but also to communicate with each other; to see, follow, and automatically copy successful investors from all around the world. We created a new category of wealth management – social investing – and we are dominating the market as evidenced by our rapid expansion,” said Yoni Assia, Chief Executive Officer of eToro.
eToro in 2019 added over 5 mn new registered users and generated gross revenues of $605mn, representing year-over-year growth of 147%. This momentum is accelerating in 2021 as a new generation of investors discovers the global markets. The firm currently has over 20 mn registered users, and its social community is expanding rapidly due to the vast and growing, total addressable market which is bolstered by secular trends such as digital wealth platforms growth and the retail participation rise.
“As a pioneer in the evolution of SPACs, FinTech Masala, our sponsor platform, seeks out companies with outsized growth, effective controls and excellent management teams. eToro meets all three of these criteria. In the last few years, eToro has solidified its position as the leading online social trading platform outside the U.S., outlined its plans for the U.S. market, and diversified its income streams. It is now at an inflection point of growth, and we believe eToro is exceptionally positioned to capitalize on this opportunity,” said Betsy Cohen, Chairman of the Board of Directors of FinTech V.
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