Freetrade, a self-directed investment platform, has reached an agreement to be acquired by IG Group, a company listed on the London Stock Exchange, for £160 million.
Freetrade experienced a remarkable increase in assets, achieving a 52% growth to close 2024 with £2.5 billion in assets under administration (AUA). Additionally, the company reported a 32% rise in revenue compared to 2023 and an EBITDA of £2.1 million for the fiscal year 2024.
Despite these successes, Freetrade encountered significant challenges, resulting in a staggering 65% reduction in its valuation in 2023, dropping from £650 million to £225 million, largely attributed to the overall economic landscape. The previous year, the company undertook cost-cutting measures, laying off 15% of its workforce, which included 300 staff members, to extend its financial runway. Further efforts to streamline operations led to the closure of its only international branch in Sweden in August, allowing the firm to concentrate on its domestic market.
Meanwhile, some investors from Crowdcube may see only slight increases in their holdings, as the peak valuation for Series B3 shares stands at just £2.60 each.
Viktor Nebehaj, CEO and co-founder of Freetrade, expressed gratitude for the continued support from crowdfunding investors throughout the company’s evolution as an independent entity. He shared enthusiasm about the acquisition, stating, “With IG Group’s substantial resources and support, this presents an exciting opportunity to accelerate our growth trajectory and enhance the delivery of new products and features.”
Following the acquisition, Freetrade will maintain its operations as an independent business under its existing brand.