Adam Dodd, co-founder of wealth tech app Freetrade, is stepping down as CEO.
Free exchange
LONDON — The head of UK equity trading service Freetrade is resigning and leaving the company effective immediately, the company told CNBC exclusively on Monday.
Adam Dodds, who founded the company with business partners Davide Fioranell and Victor Nebehay in 2016, will be succeeded as CEO by Nebehay, who is currently Freetrade’s chief operating officer, pending customary regulatory approvals.
Dodds remains Freetrade’s largest individual shareholder, owning approximately 12% of the shares, according to company filings. From now on, he will not be involved in the company’s day-to-day operations, but a Freetrade spokesman said he will continue to support the company’s development “from the outside.”
“We almost died so many times it’s hard to count.”
Dodds believed it was the right decision to leave the company and have Nebehaj take the reins as the company enters the next phase of its growth trajectory, which includes plans to launch new products including bonds and mutual funds, tax wrappers and the web. -platform. and expand its core profitable user base in the UK.
Freetrade logo on a smartphone screen.
Rafael Enrique | Sopa Images | Light rocket | Getty Images
“As we reflect on the journey from an idea to over a million users with billions in assets, we’re going through some of the tough times you’ll remember the most,” Dodds said in comments shared with CNBC. “We almost died so many times it’s hard to count.”
“Now, after our first profitable quarter and strong sustainable business growth, it is time to hang up our skates. Freetrading by default is alive and ready to challenge existing platforms in the UK with self-sustaining growth,” Dodds said.
Dodds added: “I am very pleased to announce that Victor will be taking over as CEO. I will do everything possible to support him and the company from the board of directors. For me, I’m looking forward to it.” get to know your kids better, annoy your wife on the farm, and finally get your pilot’s license.”
Nebehay, Freetrade’s new CEO, hailed Dodds’ eight-year tenure as CEO and said it was “natural that different stages of a company’s growth require different leaders.”
“With our first profitable quarter behind us, I am encouraged by the size of the opportunity,” Nebehay said in a statement. “Our talented and highly skilled team creates the right product for our customers.”
Perry Blacher, Freetrade’s chairman, said Nebehay is “ideally suited to take Freetrade from strength to strength.”
Wild few years
Dodds’ departure follows rapid growth for the company in recent years. Dodds built Freetrade from a scrappy startup looking to revolutionize the world of asset management into a company with 150 employees and more than 1.4 million users.
Freetrade attracted thousands of daily users in 2020 as retail trading activity surged following the GameStop stock trading saga, which saw the US video game retailer’s community of ardent fans drive up the company’s share price.
More recently, the company has been forced to tighten its belt as reality has turned to a bleaker macroeconomic environment. In 2022, Freetrade announced measures to lay off 15% of its workforce in a bid to improve profitability.
The following year, Freetrade raised £2.3 million ($2.9 million) in crowdfunding on Crowdcube at a valuation of £225 million – a 65% discount on the previous valuation of £650 million. Free trade at the time blamed a “different market environment” suffering from higher interest rates and inflation.
More recently, the company has some news that may please us. Freetrade reported its first quarter of profits in the three months to March, according to unaudited financial statements provided to CNBC in April. Preliminary revenue for the quarter was £6.7 million.
Freetrade still made an annual loss of £8.3 million in 2023, compared with the £28.8 million loss it suffered the year before, while revenues rose 45% to £21.6 million in 2023. the same period.