Freetrade, which claims it is building the home screen app for your life savings, has raised 176% (£1,764,417.20) of its £1,000,000 target (from 3194 investors with 3 days left in the sale at the time of writing) through its crowdfunding campaign, carried out via Crowdcube.
Freetrade says it had “added 1.6m+ lifetime registered users with £1.4bn in assets since they launched in 2019.”
This year, they’re crowdfunding “to double down on UK customer growth, expand in Europe, and launch more groundbreaking products and features.”
The firm reports a £225,000,000 Pre-money valuation; a £2.60 Share price.
Here are the highlights:
- Highest ever quarterly revenue in Q1’23: £4.7m (-£3.85m EBITDA)
- Record £1.4bn in client assets, over 20% Q1’23 new subscriber penetration
- 5x winner of British Bank Awards and Which? Recommended Provider
- Product live in Sweden, and EEA-wide authorisation
In 2019, they had “launched commission-free investing in the UK.”
This year, they brought their platform to Sweden.
They’ve built “a customer-centric subscriptions business, underpinned by their own proprietary technology stack.”
Since their last raise on Crowdcube, they have “launched in Europe through Sweden, and rolled out many highly anticipated features like Autopilot, proxy voting and annual subscriptions.”
Despite difficult conditions they claim to have “delivered their best revenue quarter yet in Q1’23 (£4.7m revenue, -£3.85m EBITDA), a 25% increase in revenue on Q1’22 and a 57% reduction in losses (£3.7m revenue, -£8.9m EBITDA). (CY’22 £14.9m revenue -£28.7m EBITDA).”
This round is all about “doubling down on our growth by upping our investment in UK customer acquisition again, while putting our EU brokerage license to work.”
They’re focusing “on high-quality customers and shipping the features they’re asking for, like mutual funds and tax reporting.”
Now, as they forge ahead on their path to profitability, they’re pleased “to offer more of their customers a chance to own a piece of Freetrade and share in their success.”
Recently, Freetrade had significantly lowered its pre-money valuation by around 65%. This move came right before its fundraise.
Just a few years back, Freetrade had been valued at £650 million, which was at the time of its previous crowdfunding efforts.
The considerable drop is not very surprising due to the current state of the financial markets. This, according to company CEO and founder Adam Dodds.
He added that Freetrade is operating in a challenging market where they need to focus more on profitability.
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