The valuation of Israel-based brokerage eToro has surged to over $2.5 billion in the secondary markets from merely $800 million in its last funding round closed in 2018, Calcalist reported on Tuesday.
The valuation was confirmed by the publication as a US-based institutional investor purchased at least $50 million worth eToro shares from existing investors and former employees at a valuation of more than $2.5 billion.
However, the brokerage declined to confirm its secondary market valuation.
“eToro has experienced significant growth over the past year and has garnered a lot of interest from global investors,” eToro said in a statement. “The company doesn’t take an active role in secondary deals that are conducted from time to time by the company’s shareholders.”
Starting with $1.7 million seed money, eToro closed five funding rounds, raising $162 million in total.
Founded in 2007, eToro gained popularity as a social trading platform, offering new traders to copy the trading strategies of other experienced traders. Over the years, the brokerage has expanded its offerings into popular asset classes, including cryptocurrencies.
Similar to other brokerages, eToro benefited from the March volatility in the markets, which was triggered by the economic impact of COVID-19. Additionally, the broker revealed that it witnessed an influx of retail traders in 2020, and according to the latest figure, it has over 15 million trades on-board.
Meanwhile, eToro is spending millions on the promotion of its brand, especially with sports sponsorships. In the current European football season, the broker signed sponsorship deals with 12 clubs in the United Kingdom and Germany.