Prytek acquires TipRanks at $200 million valuation
Prytek acquires TipRanks at $200 million valuation
The investment firm, which had already owned 40% of the Israeli fintech startup, is taking its stake to 80% with an $80 million investment.
Israeli fintech company TipRanks announced on Thursday that it has been acquired by investment firm Prytek. The investment group, headed by CEO Andrey Yashunsky and Chairman Yair Seroussi, has purchased 40% of TipRanks for $80 million, taking its total stake in the company to 80%. 20% of the shares will remain held by the company’s institutional investors.
Prytek was one of the early investors in TipRanks and also led its most recent funding round in April 2021 when the company raised $77 million. TipRanks has raised a total of $102 million to date.
Founded in 2012 by Uri Gruenbaum (CEO) and Gilad Gat (CTO), TipRanks provides a simplified stock research platform that makes alternative datasets accessible and visual for retail investors.
Using machine learning and AI, TipRanks gathers publicly available information about stocks, and presents it in easy-to-understand datasets.
The platform has gained popularity among retail investors and is now one of the leading research tools globally, with over 6 million active users per month and more than 50 million monthly users through banks and brokers.
TipRanks provides services to financial institutions such as banks, hedge funds, brokers, and stock exchanges, including Nasdaq, Robinhood, CIBC, Morgan Stanley, and the Israeli eToro. Nearly all banks and investment houses in Israel have implemented TipRanks systems.
TipRanks employs 120 people and is expected to continue recruiting additional staff this year. Its founders, Greenbaum and Gat, are expected to remain in leadership roles under the Prytek umbrella in the coming years.
The sale of TipRanks to the Prytek Group follows a record year for TipRanks in 2023, driven by both organic growth and the successful integration of The Fly, which was acquired in 2023. The Fly, a 25-year-old company specializing in real-time economic and financial news, marked TipRanks' first acquisition and the beginning of its M&A strategy. This strategy will now be accelerated thanks to Prytek’s experience in mergers and acquisitions.
Prytek, an international fintech company founded by former Israeli Andrey Yashunsky, who serves as CEO, offers infrastructure and services to banks. Established in 2017, Prytek operates in nine countries, serves over 250 customers worldwide, and employs more than 3,000 people across its divisions. Yair Seroussi, former chairman of Bank Hapoalim, has been the chairman of the group since its inception.
Uri Greenbaum, CEO of TipRanks, said: "Selling control of TipRanks was not an easy decision for me and Gilad (co-founder). This is a remarkable company with high profitability and double-digit growth. Over the years, we have received many acquisition offers and consistently declined them. After 11 years, some investors wanted to liquidate their holdings, and we are proud to have delivered exceptional returns during a challenging economic period. Partnering with Prytek is a natural fit due to their synergy, integration capabilities, and positive past experience. We chose a company that offers us both autonomy and significant expansion potential, and we appreciate the investors who have chosen to stay for the upcoming growth phase."
Andrey Yashunsky, CEO of Prytek, said: "We recognized the potential of investment information nearly a decade ago and knew we wanted to be part of TipRanks' journey, which revolutionized access to insights, data, and news in the investment field. Together with our strong financial services division, we are well-positioned to secure the future of our growing value chain."
