Adam Dodd, co-founder of wealth know-how app Freetrade, is stepping down as CEO.
Freetrade
LONDON — The boss of U.Okay. inventory buying and selling service Freetrade is stepping down and leaving the corporate with fast impact, the corporate advised CNBC solely Monday.
Adam Dodd, who co-founded the corporate with enterprise companions Davide Fioranell and Viktor Nebehaj in 2016, might be changed by Nebehaj, presently Freetrade’s chief advertising and marketing officer, as CEO, pending customary regulatory approvals.
Dodd stays the biggest particular person shareholder in Freetrade, proudly owning a roughly 12% stake, based on firm filings. He will not be concerned within the day-to-day operations of the corporate from now, nonetheless a Freetrade spokesperson mentioned he’ll proceed to help the corporate’s evolution from the “outdoors.”
‘We nearly died so many instances it is onerous to depend’
Dodd felt it was the fitting determination to go away the corporate and have Nebehaj take the reins because it enters the following stage of its development trajectory, which incorporates plans to push out new merchandise together with bonds and mutual funds, tax wrappers, and its internet platform, in addition to develop its core worthwhile U.Okay. userbase.
The Freetrade brand on a smartphone display.
Rafael Henrique | Sopa Pictures | Lightrocket | Getty Pictures
“When reflecting on the journey from thought to over one million customers with billions in property, it is getting by the robust instances you bear in mind essentially the most,” Dodd mentioned in feedback shared with CNBC. “We nearly died so many instances it is onerous to depend.”
“Now, after placing up our first worthwhile quarter and with the enterprise on a robust sustainable footing, it is time to hold up my skates. Freetrade is default alive and able to tackle the incumbent platforms within the UK with self-sustaining development,” Dodd mentioned.
Dodd added: “I am very pleased to say Viktor might be stepping as much as take over the helm as CEO. I will be doing the whole lot I can to help him and the corporate from the board. As for me I am trying ahead to attending to know my children higher, annoying my spouse on the farm, and at last getting my pilot license.”
Nebehaj, Freetrade’s incoming CEO, applauded Dodds’ eight-year run as CEO and mentioned that “it is pure that totally different levels of an organization’s development require totally different leaders.”
“With our first worthwhile quarter behind us, I am excited concerning the measurement of the chance forward,” Nebehaj mentioned in a press release. “Our proficient and high-quality staff is constructing the fitting product for our prospects.”
Perry Blacher, Freetrade’s board chairman, mentioned that Nebehaj “is ideally positioned to steer Freetrade from energy to energy.”
Wild few years
Dodds’ departure follows a wild experience for the corporate lately. Dodds took Freetrade from a scrappy startup within the early days looking for to disrupt the world of wealth administration, to a 500-person firm with over 1.4 million customers.
In 2020, Freetrade was onboarding 1000’s of customers a day as retail buying and selling exercise boomed within the wake of the GameStop stock-trading saga, which noticed a group of hardcore followers of the U.S. online game retailer drive up the worth of the corporate’s share worth.
Extra lately, it has been pressured to tighten its belt as the fact of a gloomier macroeconomic setting set in. In 2022, Freetrade introduced measures to put off 15% of its workforce as sought to push towards profitability.
The next yr, Freetrade raised £2.3 million ($2.9 million) in a crowdfunding spherical on Crowdcube at a valuation of £225 million — a 65% low cost to its earlier £650 million valuation. Freetrade on the time blamed a “totally different market setting” affected by greater rates of interest and inflation.
Extra lately, the agency has had information to cheer about. Freetrade reported its first-ever quarter of revenue within the three months by March, based on unaudited monetary statements shared with CNBC in April. Preliminary revenues hit £6.7 million for the quarter.
Freetrade nonetheless generated an annual lack of £8.3 million in 2023, down from the £28.8 million loss it racked up the yr prior, whereas revenues climbed 45% to £21.6 million in the identical timeframe.
