Freetrade raises £30M as 2021 Revenues top £15M
App based UK/EU neobroker Freetrade (at website freetrade.io) has announced that the company has raised £30 million (USD $37.5 million) in its latest funding round.
Freetrade said that all existing institutional investors participated in the round, including Molten Ventures, Left Lane Capital and L Catterton. They were joined by new investors, the Phoenix, an investment manager with over $100bn in assets, and Capricorn Capital Group, a private investment firm.
The funding came in the form of a convertible loan, which didn’t require a re-valuation of the company. Freetrade last raised funds in a November 2021 crowdfunding exercise, which valued the London based company at £650 million.
The company said that the capital was raised following a “period of strong performance” for the business, amid volatile equity markets.
Regrading its operating and financial metrics, Freetrade said that its registered users surpassed 1.3 million in the UK alone. Revenue for the calendar year 2021 increased over 6x YoY to £15.1 million. Client assets under administration (AUA) have surpassed £1 billion, and trading volumes for the year exceeded £ 3.7 billion.
Freetrade said that the new money strengthens its balance sheet, and provides it with the “firepower” to continue to develop its product and meet the needs of customers in the UK and Europe.
In the past few months Freetrade has introduced a series of new features to its products, such as Freetrade Web and highly requested stocks. Freetrade has secured a license from the Swedish financial regulator, a step forward in the company’s planned European expansion. The company has also recently onboarded its first customers in Sweden, and is planning to expand its Swedish beta offering over the next few months.