SoftBank earns $300m from eToro IPO

Softbank, the Japanese investment giant whose Israeli activities are managed by former Mossad Chief Yossi Cohen, has recorded a major return on investment in Israeli Fintech Company Etro (NASDAQ: ETOR), sources notified “Glove.”

Market sources estimate that the fund currently holds Etoro stock, reflecting a profit of around $300 million in its investment. Profits have not yet been realized as SoftBank did not sell its shares on Flotation, which was completed last week. Estimates are that SoftBank has earned three times the fund’s original investment.

Lower rating than previous investments

SoftBank first invested in Etoro in 2021, investing in a private finance round held in preparation for a planned merger with US-based SPAC. This was eventually cancelled. At the time, the company was valued at around $10 billion, with SoftBank’s investments estimated at between $100 million and $150 million.

Although the fund’s holdings have not been publicly disclosed, recent estimates show that they currently range from 1% to 5% of our shares, following dilutions over the years.

Nasdaq’s Etoro IPO was completed on May 14th at a $4.3 billion valuation. The stock price rose 34% on the first day of trading, increasing the company’s market capitalization to $5.4 billion. The market capitalization has since increased to $5.6 billion.

Still, Etoro’s rating is significantly lower than previous estimates than expectations for a 2021 SPAC merger, but is high enough for early investors to earn handsome returns, even in the case of SoftBank, which was invested at a higher rating. According to industry sources, SoftBank has chosen not to sell the shares as part of its offering, but it can consider a partial future sale.

Etro investments are part of SoftBank’s broader activity in the Israeli technology market. Since its launch in Israel, the fund has invested the estimated NIS NIS in a variety of high-tech companies, including Cato Networks, Claroty and others.

SoftBank also enjoyed handsome profits on Wiz

Japan’s fund focuses on areas such as cybersecurity, artificial intelligence, fintech and software infrastructure, and is currently one of Israel’s most active and important foreign investors.

In recent months, SoftBank has particularly enjoyed handsome benefits from a relatively slow investment in Wiz, cybersecurity company, which was sold to Google for $32 billion in March.

SoftBank, which invested in Wiz shortly before the transaction, is expected to record a return of 3-5 times the investment, with profits expected to reach hundreds of millions of shekels.

Published by Globes, Israel Business News -en.globes.co.il- May 20, 2025.

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