Multi-asset social investment network and Robinhood competitor eToro have signed a deal that aims to put the fintech startup face-to-face with Robinhood – for $50 million in cash and common stock. Agreement.
Israel-based Etoro told TechCrunch this week that it has received approval from FINRA. Financial Industry Regulatory Authority, to move forward with the acquisition. The company originally submitted an application for regulatory approval in December 2021.
Jeff Myers and Ryan Belager-Saleh co-founded Gatsby, a commission-free options and stock trading app, in 2018. The pair had one previous successful venture in Dealtable.com, a social data segmentation platform.
TechCrunch reported on the New York-based startup A $10 million Series A by mid-March 2021. Backers include Techstars Ventures, Beta Bridge Capital, Barclays Bank, SWS Venture Capital, Rosecliff Ventures, a network of “super angels” listed on ClearList and an oversubscribed SeedInvest campaign.
Gatby’s target customers are Gen Xers and Millennials, and he told me that he aims to give people “a safe and fair trading platform where users don’t have to worry about getting their heads in or getting locked out of their names when volatility increases.” Its app launched to iOS and Android in early 2020.
The company’s entire 20-person team will join eToro.
Yoni Asia, CEO and founder of eToro, told TechCrunch about the acquisition. It will allow his company to expand its US product, which today focuses on stocks and crypto.
“The Gatsby integration allows us to provide US consumers with safer and simpler trading options and greater flexibility to use new strategies,” Asia said. “We believe options can provide retail investors with opportunities to generate returns in today’s most challenging market conditions. Expanding our US business is a key goal and we are pleased to partner with the Gatsby Group.
The exit certainly seems like a good outcome for Gatsby and his investors.
Gatsby co-founder Jeff Myers told TechCrunch that the startup is “not“Planning to finish Gatsby’s story yet.”
But the product and vision between Gatsby and eToro was undeniable, he said. “We have long admired Yoni and the team he has built and are excited to continue our journey together with eToro.”
Ryan Belanger-Saleh, Gatsby Co-CEO, echoed Myers’ sentiment.
“They were truly pioneers in social investment and we always thought of them as a great big brother and sister,” he said in a written statement.
EToro has grown tremendously in recent years. The company currently has over 30 million registered users in over 100 countries. This is up from 10 million at the end of 2018, 12.3 million at the end of 2019, 17.5 million at the end of 2020 and 26.9 million at the end of 2021. The number of funded accounts is over 2.7 million.
The company In 2021, it recorded total commissions of $1.2 billion, a growth of more than 400% compared to 2019, according to Asia.
Gatsby, on the other hand, said that since the beginning of 2020, he has seen an average month-on-month growth of almost 900%.
The acquisition is eToro’s fourth major since 2007. Since then. It has previously acquired an investment tracking application Delta; Mark Million LimitedHelped build and launch a UK based e-money business Etoro moneyHis e-money account; And The organization, eToro Labs, a smart contracts/blockchain business that is part of fintech’s in-house blockchain innovation and R&D division.
Itoro announced in March 2021 He plans to make it public In a massive $10.4 billion transaction, it merged with SPAC FinTech Acquisition Corp.V. The transaction was supposed to close in the third quarter of 2021, with eToro announcing the deal in July. It has been discontinued.
“We are private because of the current market conditions,” Asia told TechCrunch. “We continue to view becoming a public company as part of eToro’s future and look forward to the right opportunity to take this next step.
M&A has been on the decline in the fintech world, so the eToro/Gatsby deal is a bright spot in a year full of ups and downs.
Meanwhile, Robinhood’s stock has taken a beating of late and the company has It is set About 1,000 people since the beginning of the year. At the time of publication, the company was trading at $10.90 after hours, well below its 52-week high of $52.06.