Adam Dodd, co-founder of wealth technology app Freetrade, will step down as chief executive.
free trade
LONDON — British stock trading service Freetrade exclusively told CNBC on Monday that its boss is resigning and leaving the company with immediate effect.
Adam Dodds co-founded the company in 2016 with business partners Davide Fioranell and Viktor Nebehaj. The CEO position will be replaced by Nebehaj, currently Freetrade’s chief operating officer, pending customary regulatory approval.
Dodds remains Freetrade’s largest individual shareholder, with about 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 Free Trade spokesman said he will continue to support the company’s development “from the outside.”
“We almost died too many times to count”
Dodds believes leaving the company and letting Nebehaj take over is the right decision as it enters the next phase of its growth trajectory, which includes plans to launch new products such as bonds and mutual funds, tax wrappers and its online platform, as well as expand its core earnings UK user base.
Free trade sign on smartphone screen.
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“When you look back on the journey from an idea to over 1 million users with billions in assets, what you remember most are the tough times,” Dodds said in comments shared with CNBC. “We almost died a lot. Countless times.”
“Now, after delivering our first profitable quarter and the business building a strong sustainable foundation, it’s time to hang up my skates. Free Trade is here by default and ready to challenge with self-sustaining growth The existing platform in the UK,” Dodds said.
Dodds added: “I am delighted to say that Victor will take over the role of CEO. I will do everything in my power from the board to support him and the company. As for me, I am looking forward to getting to know my children better and annoying me in farm wife and eventually getting my pilot’s license.
Nebehaj, Freetrade’s incoming CEO, praised Dodds’ eight years as CEO and said “it’s only natural that different stages of a company’s growth require different leaders.”
“With our first profitable quarter behind us, I’m excited about the opportunities ahead,” Nebehaj said in a statement. “Our talented, high-caliber team is building the right products for our customers.”
Perry Bletcher, chairman of the Free Trade Commission, said Nebehaj was “ideally positioned to lead the continued growth of free trade”.
wild years
Dodds’ departure comes after a period of frantic growth for the company in recent years. Dodds grew Freetrade from a scrappy early-stage startup looking to disrupt the wealth management space to a company with 150 employees and more than 1.4 million users.
Freetrade attracted thousands of users a day in 2020 as retail trading activity boomed in the wake of the financial crisis. GameStop stock trading saga, as the U.S. video game retailer’s die-hard fan community drove the company’s stock price higher.
Recently, the company has been forced to tighten its belt as the macroeconomic environment has become gloomier.
The following year, Freetrade raised £2.3 million ($2.9 million) in a crowdfunding round on Crowdcube, valuing it at £225 million, a 65% discount to its previous valuation of £650 million. Free Trade at the time blamed “different market conditions” plagued by rising interest rates and inflation.
Recently, the company has received some cheering news. Freetrade posted its first-ever quarterly profit in the three months to March, according to unaudited financial statements shared with CNBC in April. Preliminary revenue for the quarter reached £6.7 million.
Freetrade’s annual losses remained at £8.3 million in 2023, down from £28.8 million the previous year, while revenue grew 45% to £21.6 million over the same period.
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