Trading platform eToro is seeking to go public in the US with a target valuation of $5 billion.

Robinhood's competitor, eToro, is seeking to go public with a target valuation of $5 billion. According to sources, eToro is working with Goldman Sachs Group, Inc. to prepare for an initial public offering (IPO) in the United States. The sources stated that eToro is considering going public as early as the second quarter of next year, but this timeline may change. Founded in 2007, eToro's trading platform allows users to trade stocks, cryptocurrencies, and follow the movements of top investors. According to a recent statement, the platform has over 38 million registered users from 75 countries. Previously, eToro attempted to go public through a merger with a special purpose acquisition company (SPAC) led by Betsy Cohen at a valuation of $10.4 billion, but the deal was mutually terminated in 2022. eToro completed a $250 million financing round last year, bringing its valuation to $3.5 billion. Investors include ION Group, SoftBank Vision Fund II, and Velvet Sea Ventures. eToro's profitability has significantly improved. The company reportedly had a core profit of $107 million last year, a strong turnaround from a loss of over $40 million the previous year. In addition to Robinhood, the company's competitors include Coinbase. eToro has also faced some regulatory issues. In September of this year, the company agreed to pay $1.5 million to settle with the U.S. Securities and Exchange Commission (SEC). The SEC had previously accused the company of operating an unregistered broker-dealer and an unregistered clearing agency, with its trading platform facilitating the buying and selling of certain cryptocurrencies as securities.