Freetrade Acquired by IG Group for £160m, Dividing Crowdfunding Investors

The sale marks a significant valuation drop for the fintech firm, leaving early backers with mixed returns and later investors facing steep losses.

Freetrade, a UK-based stock trading app, has been acquired by IG Group in a £160 million deal, a 29% discount from its previous valuation.
The acquisition will provide early crowdfunding investors with returns of up to 15 times their initial investment, while some later investors face losses exceeding 80%.
Freetrade's valuation had dropped from a high of £650 million in 2021 to £225 million in 2023 due to cost-cutting measures and a broader fintech market downturn.
The deal has sparked backlash from some investors who feel the sale undervalues the company despite its recent profitability and revenue growth.
Under the deal, Freetrade will continue operating as a standalone brand, with IG Group aiming to expand its reach to younger retail investors.