After the year Robinhood’s had, as retail investors took advantage of their free time during the pandemic to take up trading, many on Wall Street have been anxiously anticipating the day the company goes public.
But this week, there’s another fintech name capitalizing from the amateur trading boom that’s making noise around an IPO, and it just so happens to be a trading-platform rival, eToro.
Much like Robinhood, eToro is a commission-free trading app that was founded in 2007 and has since expanded to more than 100 countries around the world, servicing more than 20 million users. And in 2020, the company had gross revenues of $605 million, up 147% year on year.
As it’s been going for the past few months, eToro will soon go public by was of a SPAC, called Fintech Acquisition. The special purpose acquisition company will combine with eToro through an estimated $10.4 billion merger.
Speaking on the deal, Fintech AcquisitionChairwoman Betsy Cohen, also the founder of financial services firm The Bancorp, said the SPAC was seeking out targets with “outsized growth, effective controls and excellent management teams. eToro meets all three of these criteria,” further saying:
“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 US market, and diversified its income streams. It is now at an inflection point of growth.
Shares of Fintech Acquisition have already surged as much as 43.2% this week since news broke, as investors anticipate the potential of this huge deal.