Israel-based eToro to take over fintech startup Gatsby for $50Mn

By Ayushi Garg  | Date: August 19, 2022

Israel-based eToro to take over fintech startup Gatsby for $50Mn

eToro, an Israeli social trading and multi-asset investment company, has recently entered into a definitive agreement to acquire Gatsby, a fintech startup, for $50 million in cash and a common stock deal.

In a statement, eToro said that it recently received approval from the Financial Industry Regulatory Authority (FINRA) to move ahead with the acquisition. Reportedly, the firm filed for regulatory approval in December 2021.

For the uninitiated, Gatsby, a commission-free options and stock-trading app, was co-founded by Jeff Myers and Ryan Belanger-Saleh in 2018. This app was intended to help younger traders.

In March 2021, the startup raised a Series A round of $10 million. Beta Bridge Capital, Barclays Bank, Techstars Ventures, Rosecliff Ventures, SWS Venture Capital, a super angels’ network arranged by ClearList and an oversubscribed SeedInvest campaign backed this round.

Gatsby mainly targets Gen Zers and millennials, and it aims to provide a safer and fair platform for trading to users where they can trade without any worries. The app was introduced to iOS and Android in early 2020.

As per sources, the entire 20-person team of Gatsby will be joining eToro.

Commenting on the move, Yoni Assia, CEO and co-founder, eToro, mentioned that this acquisition would allow the firm to expand the range of its U.S. product, which majorly focuses on stocks and crypto.

The Gatsby integration will allow the firm to provide a safe and simple way to trade options to users in the U.S. and offer them more flexibility to use new strategies, said Assia. Upscaling the business in the U.S. is a primary goal, and the firm is keen on collaborating with the team of Gatsby.

In recent years, eToro has demonstrated impressive growth. Currently, the firm has more than 30 million registered users in approximately 100 countries. In 2021, the company recorded total commissions of $1.2 billion, an increase of more than 400% compared to 2019.

Source credit – https://techcrunch.com/2022/08/17/fintech-etoro-to-acquire-startup-gatsby-for-50m/

About Author

Ayushi Garg     ibmag.com

Ayushi Garg

Currently working as an associate content writer, Ayushi pens down insightful articles for several websites. She began her profession by taking classes in digital marketing to broaden her skills. Given her passion for writing, she took up several freelancing projects ...

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