IG Group snaps up Freetrade in £160M deal after valuation plunge
London-based stock trading app Freetrade has been acquired by IG Group in a £160 million cash deal. The purchase price marks a significant drop from the company's earlier fundraising valuation. Despite this, Freetrade will remain an independent business under its new ownership. Freetrade, which turned profitable in early 2024, reported a £12.3 million gross profit and a modest operating profit during the first half of the year. The app had previously raised substantial funding, including a $69 million round, but the acquisition valuation fell over 25% below its last fundraising figure.
The deal allows IG Group to enter the UK's direct investment market, expanding its existing trading services. Freetrade's leadership will see changes, with CEO Viktor Nebehaj stepping down this summer. Nebehaj, a long-time executive at the company, had held roles such as COO, CMO, and Head of Growth since its early days. Before Freetrade, he spent seven years at Google.
Early investors in Freetrade received an average return of 15 times their original stake. However, the lower-than-expected acquisition price led to some backlash, with concerns raised over the gap between previous valuations and the final deal. Freetrade will continue operating as a standalone platform under IG Group's ownership. The acquisition strengthens IG's position in the UK investment sector, though no immediate data shows how it will affect Freetrade's user base or market share. The deal was funded entirely from IG's existing capital reserves.
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