eToro suffers a SPAC setback
Online trading platform eToro could be the latest fintech company to cancel plans to go public, as multiple reports signal it is planning a new round of funding at a significant discount to its previous valuation.
Why it matters: The SPAC boom has gone bust, and eToro is the latest casualty of a market that has turned against new fintech listings.
Flashback: eToro first announced plans to go public through a merger with blank check acquisition company FinTech Acquisition Corp. V over a year ago at a valuation of $10.4 billion.
- In December, the firms extended their deadline to complete the deal to June 30 but cut eToro's valuation to $8.8 billion.
Driving the news: With that deadline fast approaching and little appetite for new fintech listings, eToro is expected to cancel its SPAC merger and seek a new round of private financing.
- While the amount it hopes to raise is uncertain, what is clear is that any new funding will come at a lower valuation even to its December write-down, probably in the $5-6 billion range, according to reports.
Context: eToro isn't the only fintech company to deal with recent fallout in the public markets.