Freetrade, a London-based fintech startup known for its commission-free trading platform, has been acquired by FTSE-250 listed IG Group for €189 million, resulting in returns for crowdfunded investors of the startup.
This acquisition marks a significant step for both companies, with Freetrade poised to scale its operations further while IG Group enhances its reach in the UK trading and investment market.
Viktor Nebehaj, CEO and co-founder of Freetrade said: “This is an exciting opportunity to accelerate our growth and delivery of new products and features on our award-winning platform. IG’s vision for Freetrade is closely aligned with our own and its backing will be of huge benefit as we continue to scale the business.”
Founded in 2018 by by Adam Dodds, Davide Fioranelli, André Mohamed, and Breon Corcoran, Freetrade has gained prominence as a mobile-first platform catering to newer investors.
The startup’s approach, emphasising user-friendly technology and eliminating trading commissions, has challenged established players like Hargreaves Lansdown.
Currently boasting 720,000 customers and managing assets worth €2.9 billion, Freetrade will continue operating as a standalone brand post-acquisition, with the transaction expected to close by mid-2025.
The deal is also notable for Freetrade’s crowdfunding investors, who backed the company with nearly €35 million through Crowdcube.
These early supporters will now see a financial return, with fintech analyst Seb Johnson detailing that Freetrade A Ordinary share and B Investment shareholders will receive €1.41 per share, Series B1 shareholders €2.47 per share, and Series B3 shareholders €3.08 per share.
Despite achieving a valuation of €771 million during the pandemic in 2021, Freetrade’s valuation dropped to €266 million during a 2023 crowdfunding round.
Nonetheless, the company reached a milestone in 2024 by reporting its first half-year adjusted operating profit of €107k.
Breon Corcoran, CEO of IG Group, said: “This is a rare opportunity to strengthen IG’s UK trading and investments offering and broaden our target addressable market. Freetrade is one of the most successful emerging players in the UK direct-to-customer investment market, with a strong brand, highly scalable technology and delivering rapid growth. I am delighted that Viktor and his team will join IG and continue to lead Freetrade.”
Molten Ventures, a prominent VCl firm, has also announced its intention to divest its stake in Freetrade following the acquisition. This strategic exit is part of Molten Ventures’ broader capital allocation policy, which includes a €5.9 million share repurchase programme
By combining IG Group’s resources with Freetrade’s innovative platform and loyal customer base, the acquisition is expected to have a transformative impact on the UK trading landscape.
Read the orginal article: https://www.eu-startups.com/2025/01/uk-startup-freetrade-acquired-by-ig-group-in-a-e189-million-deal/
