2023-07-31 08:40:46 ET
eToro, an Israeli digital brokerage, agreed to a $120M secondary share sale as angel investors and employees were given a chance to sell shares to some of the company's existing investors, CNBC reported Monday, citing a memo.
The round was said to have given the social investing platform a slightly lower valuation than the $3.5B it was tagged with in a primary funding round earlier in 2023.
The move comes after Robinhood Markets ( HOOD ) rival eToro, which offers stock, cryptocurrency and options trading, dropped its plans to go public through a SPAC merger with Fintech V in a deal that would have valued the company at $10B. At the same time, investors weighed their exposure to retail brokerages as equity and crypto prices suffered sharp losses.
“This secondary transaction will give existing shareholders in eToro and veteran employees who have vested options the opportunity to sell a proportion of their shares to these purchasers,” eToro CEO and Co-Founder Yoni Assia said in the memo to employees, CNBC reported.
“This is not a primary i.e. eToro is not raising money — rather it is a moment for some long standing shareholders and employees to take some liquidity. As always, please maintain confidentiality and do not share any details of this potential transaction with anyone. Employees with eligible options will receive an email with further details,” he added .
More on eToro:
- eToro to end U.S. unsers' access to four cryptos
- Brokerages look on as Twitter inks trading partnerships with eToro
- Etoro dives into options trading after Gatsby deal
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Israeli investing platform eToro reportedly agrees to $120M share sale