{"id":45455,"date":"2025-01-16T16:08:00","date_gmt":"2025-01-16T16:08:00","guid":{"rendered":"https:\/\/crowdfundjunction.com\/blog\/uk-trading-app-freetrade-robinhood-rival-acquired-by-ig-group-for-195-million\/"},"modified":"2025-01-16T16:08:00","modified_gmt":"2025-01-16T16:08:00","slug":"uk-trading-app-freetrade-robinhood-rival-acquired-by-ig-group-for-195-million","status":"publish","type":"post","link":"https:\/\/crowdfundjunction.com\/blog\/uk-trading-app-freetrade-robinhood-rival-acquired-by-ig-group-for-195-million\/","title":{"rendered":"UK trading app Freetrade, Robinhood rival, acquired by IG Group for $195 million"},"content":{"rendered":"

(Originally posted on : Invezz )<\/b>
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Freetrade, the UK-based zero-commission stock trading app and a rival to Robinhood, has been acquired by IG Group for \u00a3160 million ($195 million). <\/p>\n

The deal values Freetrade at a 29% discount to its 2023 valuation of \u00a3225 million and reflects ongoing challenges for fintech firms facing economic uncertainty. <\/p>\n

Despite the drop in valuation, Freetrade will retain its brand identity and operate as a commercially standalone entity, according to company statements.<\/p>\n

It currently has 720,000 customers and managing assets worth \u20ac2.9 billion.<\/p>\n

Rise and fall: Freetrade\u2019s journey<\/h2>\n

Founded in 2016, Freetrade quickly gained popularity among younger and novice investors, offering an easy-to-use platform for commission-free equity trading. <\/p>\n

The app expanded its offerings over time to include exchange-traded funds (ETFs), savings products, and government bonds.<\/p>\n

Freetrade\u2019s growth was amplified during the pandemic, as retail trading surged amid a wave of speculative interest fueled by social media platforms like Reddit. <\/p>\n

The company saw significant user engagement during the GameStop short squeeze of early 2021, where retail traders caused the stock price to soar against short sellers.<\/p>\n

However, Freetrade\u2019s momentum slowed in the aftermath of the pandemic. <\/p>\n

Macroeconomic pressures, including rising interest rates and subdued retail trading activity, forced the company to make significant adjustments. <\/p>\n

In 2023, its valuation dropped 65% from a 2021 peak of \u00a3650 million. <\/p>\n

That year, Freetrade also reduced its workforce by 15% and closed its operations in Sweden to focus solely on the UK market.<\/p>\n

Consolidation in the wealth-technology industry<\/h2>\n

The acquisition comes at a time of consolidation in the wealth technology industry, as firms seek scale to remain competitive.<\/p>\n

The \u00a3160 million deal underscores the increasing pressures on smaller fintech firms to partner with larger players to sustain growth.<\/p>\n

Freetrade\u2019s CEO and co-founder, Viktor Nebehaj, described the acquisition as a \u201ctransformative deal that recognizes the significant value that Freetrade has created.\u201d <\/p>\n

\u201cWe\u2019re grateful for the support of our crowdfunding investors throughout our journey as a standalone business. Together with IG Group\u2019s significant resources and backing, this is an exciting opportunity to accelerate our growth and delivery of new products and features,” he said. <\/p>\n

The transaction follows similar moves in the industry, such as the \u00a35.4 billion acquisition of Hargreaves Lansdown<\/a> by a consortium led by private equity firm CVC Group. <\/p>\n

Analysts believe that more consolidation could follow as fintech firms adapt to changing market dynamics.<\/p>\n

What it means for Freetrade’s crowdfunding investors<\/h2>\n

The deal holds particular significance for Freetrade\u2019s crowdfunding investors, who contributed nearly \u20ac35 million via Crowdcube to support the company\u2019s growth.<\/p>\n

According to fintech analyst Seb Johnson, Freetrade A Ordinary share and B Investment shareholders will receive \u00a31.19 per share; Series B1 shareholders will receive \u00a32.08 per share; and Series B3 shareholders will receive \u00a32.60 per share.<\/p>\n

Freetrade, which achieved a peak valuation of \u20ac771 million during the pandemic-driven retail trading boom in 2021, experienced a steep drop to \u20ac266 million in its 2023 crowdfunding round.<\/p>\n

Despite this decline, the company reached a significant milestone in 2024, reporting its first half-year adjusted operating profit of \u20ac107,000, marking a positive turn in its financial performance.<\/p>\n

Freetrade ended 2024 with strong financial results, including a 52% growth in assets under administration (AUA) to \u00a32.5 billion and a 32% increase in revenue. <\/p>\n

With IG Group\u2019s backing, the company plans to accelerate its growth trajectory and launch new products.<\/p>\n

The acquisition remains subject to regulatory approval and is expected to close later this year.<\/p>\n

The post UK trading app Freetrade, Robinhood rival, acquired by IG Group for $195 million<\/a> appeared first on Invezz<\/a><\/p>\n

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(Originally posted on : Invezz ) Freetrade, the UK-based zero-commission stock trading app and a rival to Robinhood, has been acquired by IG Group for \u00a3160 million ($195 million). The deal values Freetrade at a 29% discount to its 2023 valuation of \u00a3225 million and reflects ongoing challenges for fintech firms facing economic uncertainty. Despite […]<\/p>\n","protected":false},"author":3947362359,"featured_media":45456,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"om_disable_all_campaigns":false,"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0},"categories":[39],"tags":[],"_links":{"self":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/posts\/45455"}],"collection":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/users\/3947362359"}],"replies":[{"embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/comments?post=45455"}],"version-history":[{"count":0,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/posts\/45455\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/media\/45456"}],"wp:attachment":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/media?parent=45455"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/categories?post=45455"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/tags?post=45455"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}