Freetrade, the commission-free stockbroking app, has now raised over 8 million pounds on its first day of trading on Crowdcube. The firm managed to raise £5m in private mode from past investors and others who had already signed up for early access.
Barely four hours into the public mode trading, the company reached £8m with many investors from up to 63 countries taking part in this funding round. The last Freetrade crowdfunding round happened in May 2021. Since then, the total registered users on the platform have increased exponentially from about 150,000 to more than a million. That is a 600% growth within 18 months.
The client assets now have surpassed £1bn, helped by the introduction of new subscription accounts, including ISAs, Freetrade’s Plus membership together with the Freetrade Pension. Freetrade has priced the current round, which is its seventh, at a valuation of around £650 million. The funding comes about seven months after the firm raised a Series B round of nearly $69 million.
The company said that it will use these resources and funds to embark on a European expansion mission. It will then follow that with a tilt to the Australian and United States markets. In the US market, it expects to compete against Robinhood.
This product’s roadmap for the Crowdcube pitch features plans to roll out a cryptocurrency investing service, securities lending, and fractional trading. The firm is now projecting that revenue for 2021 will reach £15 million and projected Ebitda losses of £26 million.
Freetrade aims to reach £50 million in revenue for next year on a widening loss of around £62 million, rising to an impressive £150 million in turnover for 2023 and a mitigated loss of £49 million.