Commission-free stockbroking app Freetrade has raised £8 million on its first day of trading on Crowdcube
Since Freetrade’s last crowdfunding round in May 2020, total registered users on the platform have increased from approximately 150,000 to over 1 million, representing a nearly 600% increase in 18 months. Client assets now exceed £1bn, helped by the launch of new subscription accounts, including ISAs, Freetrade’s Plus membership and the Freetrade Pension.
Freetrade priced the current round – its seventh in total – at a valuation of £650 million. It comes just seven months after the company raised a Series B round of $69 million.
Freetrade is to use the funds to embark on European expansion, followed by a tilt at Australia and the US markets, where it will face up against Robinhood. The product roadmap for the Crowdcube pitch includes plans to rolls out a crypto investing service, fractional trading and securities lending.
The company is currently forecasting revenue for 2021 at £15 million and projected Ebitda losses of £26 million. It intends to hit £50 million in revenue for 2022 on a widening loss of £62 million, rising to £150 million in turnover for 2023 and a redcuced loss of £49 million