Adam Dodd, co-founder of wealth technology app Freetrade, is stepping down as CEO.
Free trade
LONDON – The boss of British stock trading service Freetrade is resigning and leaving the company with immediate effect, the company exclusively told CNBC on Monday.
Adam Dodds, who founded the company in 2016 with business partners Davide Fioranell and Viktor Nebehaj, will be replaced as CEO by Nebehaj, currently Freetrade’s chief operating officer, subject to customary regulatory approvals.
According to company filings, Dodds remains Freetrade’s largest individual shareholder, with a stake of about 12%. From now on he will no longer be involved in the company’s day-to-day operations, but a Freetrade spokesman said he would continue to support the company’s development from “outside”.
“We’ve almost died so many times it’s hard to count.”
Dodds felt it was the right decision to leave the company and let Nebehaj take the reins as it enters the next phase of its growth journey, which includes plans to launch new products, including bonds and mutual funds, tax wrappers and its web platform. The company also aims to grow its profitable core user base in the UK.
The Freetrade logo on a smartphone screen.
Rafael Henrique | Sopa pictures | Light rocket | Getty Images
“When you think about the journey from idea to over a million users with billions in assets, it’s the difficult times that you remember most,” Dodds said in comments shared with CNBC. “We’ve almost died so many times it’s hard to count.”
“Now that we have completed our first profitable quarter and the company is on a strong, sustainable footing, it is time to hang up my skates. “Freetrade remains alive and ready to take on the established platforms in the UK with self-sustaining growth,” said Dodds.
Dodds added: “I am delighted to say that Viktor will be taking the helm as CEO. I will do everything I can to support him and the company from the board. As for me, “I’m happy” to getting to know my kids better, annoying my wife on the farm, and finally getting my pilot’s license.
Nebehaj, Freetrade’s new CEO, praised Dodds’ eight-year tenure as CEO, saying, “It is natural that different stages of company growth require different leaders.”
“As we emerge from our first profitable quarter, I am excited about the magnitude of the opportunity ahead of us,” Nebehaj said in a statement. “Our talented and highly qualified team develops the right product for our customers.”
Perry Blacher, Freetrade’s chief executive, said Nebehaj is “ideally positioned to lead Freetrade from success to success.”
Wild few years
Dodds’ departure follows a wild run for the company in recent years. Dodds has taken Freetrade from a struggling startup that initially set out to revolutionize the world of wealth management to a company with 150 employees and over 1.4 million users.
In 2020, Freetrade gained thousands of daily users as retail trading activity boomed in the wake of the GameStop stock trading saga, which saw a community of hardcore fans of the US video game retailer drive up the company’s share price.
More recently, the company has been forced to tighten its belt as the reality of a bleaker macroeconomic environment set in. In 2022, Freetrade announced measures to lay off 15% of its workforce to boost profitability.
The following year, Freetrade raised £2.3 million ($2.9 million) in a crowdfunding round on Crowdcube at a valuation of £225 million – a 65% discount to its previous valuation of £650 million. At the time, Freetrade blamed a “different market environment” characterized by higher interest rates and inflation.
More recently there has been news for the company that gave cause for celebration. Freetrade reported its first quarterly profit in the three months ended March, according to unaudited financial reports shared with CNBC in April. Preliminary sales for the quarter were £6.7 million.
Freetrade still made an annual loss of £8.3m in 2023, compared to the loss of £28.8m the previous year, while revenue rose 45% to £21.6m in the same period.
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2024-05-13 15:15:25
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