Overview

• 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.