Freetrade, the self-directed investment platform, has agreed to be acquired by London-listed IG Group for £160 million.
Freetrade grew assets by 52% to close 2024 with £2.5 billion in AUA. Revenue grew by 32% compared to 2023 and Freetrade recorded EBITDA of £2.1 million for FY’24.
However, the firm has also faced headwinds, slashing its value in 2023 by 65% from a high of £650 million to £225 million, blaming the broader economic climate. The previous year it laid off 15% of its 300 staff in an effort to preserve its cash runway. Further attempts to shave costs came in August last year, as Freetrade shut down its only overseas business in Sweden to focus on its home market.
Some Crowdcube investors in the business will see only marginal gains in their holding, with a top valuation for Series B3 shares at just £2.60 per share.
Viktor Nebehaj, CEO and co-founder of Freetrade, says: “We’re grateful for the support of our crowdfunding investors throughout our journey as a standalone business. Together with IG Group’s significant resources and backing, this is an exciting opportunity to accelerate our growth and delivery of new products and features.”
The deal will see Freetrade continue to operate as a commercially standalone business, under its own brand.