eToro gets ‘unicorn’ classification after valuation triples in two years

eToro, popular Israeli social trading and multi-asset brokerage company, is the latest addition to the Israeli Unicorn club. eToro acquired this new classification of a “unicorn” after its valuation surged past $2.5 billion. According to reports, it had reported a valuation of $800 million during its last funding round back in 2018.

According to a report,

“The spike in valuation was confirmed following the recent purchase of shares in the secondary market by a U.S. institutional investor at a sum of at least $50 million, with the unnamed U.S. firm purchasing shares from previous investors and employees.”

Other contributing factors have been the introduction of new cryptos, ETFs, and stock products surging its valuation to billions of dollars. As per an anonymous source, eToro’s valuation is set to increase further by its next funding round. The firm has noted significant growth over the past year and it has also managed to gain a lot of interest from global investors.

Although the COVID-19 pandemic contributed to many businesses stumbling, eToro seemed to have functioned smoothly. It also registered a rise in the number of users on its platform and the volume of trading in shares also tripled over the same period last year. According to a statement by eToro,

“eToro has experienced significant growth over the past year and has garnered a lot of interest from global investors. The company doesn’t take an active role in secondary deals that are conducted from time to time by the company’s shareholders.”

The closing of the latest funding round brought eToro’s total funds raised to $162 million in five funding rounds. The company currently employs over 1,000 people in 10 offices across the world, including 600 in Israel. It has recruited around 300 people since the start of this year alone, half of them in Israel.