British retail investing platform Freetrade has agreed to acquire the UK customer base of Australian rival Stake. The move underscores the intensifying competition in the British digital investment landscape. The deal, first reported by CNBC, will see Freetrade take on all of Stake's UK clients and their associated assets.

Freetrade Acquires Stake's UK Customer Base, Bolstering Domestic Presence

Freetrade, which currently manages over £2 billion in assets for UK clients, expects to complete the transfer of Stake's UK customer accounts by November. Stake users will be contacted in the coming weeks with details on how to migrate their funds and assets to the Freetrade platform.

“This deal shows our commitment to capitalizing on opportunities for inorganic growth to reach that goal,” commented Viktor Nebehaj, the new CEO of Freetrade, who replaced co-founder Adam Dodds in the position. Dodds decided to step down in May this year after six years of developing the company.

“I’m focused on scaling Freetrade into the leading commission-free investment platform in the UK market,” Nebehaj added.

The financial terms of the transaction were not disclosed by either company. Stake, which entered the UK market in 2020, has decided to refocus on its core operations in Australia and New Zealand following a recent business review.

Becoming Profitable and Competing Robinhood

This acquisition Acquisition Acquisition means acquiring or taking possession or the securing of property, services, or abilities. To put it simply, it is the act or process of acquiring or gaining. You can acquire a work of art, you can acquire an ability such as speaking another language, you can acquire a business or shares in a company and you can acquire an accountant's service. For example, you can acquire a new car. In a broad sense, Acquisition can mean the act of taking ownership or possession of something. There Acquisition means acquiring or taking possession or the securing of property, services, or abilities. To put it simply, it is the act or process of acquiring or gaining. You can acquire a work of art, you can acquire an ability such as speaking another language, you can acquire a business or shares in a company and you can acquire an accountant's service. For example, you can acquire a new car. In a broad sense, Acquisition can mean the act of taking ownership or possession of something. There Read this Term comes at a pivotal time for Freetrade, which reported its first profitable half-year in 2024. The company saw adjusted earnings before interest, tax, depreciation, and amortization reach £91,000 in the six months through June, with revenues climbing 34% year-over-year to £13.1 million.

This was also confirmed by the results reported for the first quarter when the company reached breakeven. Last year, it lost £8.3 million, still an improvement from the £28.8 million loss recorded in the previous year. The company's revenues climbed to £21.6 million in 2023, marking an uplift of 45% from 2022.

“Over the last few months, we have worked closely with Stake to ensure a smooth transition and good outcomes for their UK customers,” CEO Nebehaj said. “We look forward to welcoming them and continuing to support them on their investment journeys.”

London-based Robinhood rival Freetrade buys UK arm of Australian investing platform Stake https://t.co/36KAe5QNhV

— Kiwi (@Kiwibest) October 1, 2024

The move also reflects the broader competitive pressures in the UK retail investing sector, particularly with the recent entry of US giant Robinhood into the market. Robinhood, which launched in the UK in November 2023, has been aggressively expanding its offerings, recently introducing a securities lending scheme to attract British investors.

The company will need to navigate the challenges of integrating Stake's customer base while continuing to innovate and compete with both established players and new entrants in the rapidly changing fintech Fintech Financial Technology (fintech) is defined as ay technology that is geared towards automating and enhancing the delivery and application of financial services. The origin of the term fintechs can be traced back to the 1990s where it was primarily used as a back-end system technology for renowned financial institutions. However, it has since grown outside the business sector with an increased focus upon consumer services.What Purpose Do Fintechs Serve?The main purpose of fintechs would be to suppl Financial Technology (fintech) is defined as ay technology that is geared towards automating and enhancing the delivery and application of financial services. The origin of the term fintechs can be traced back to the 1990s where it was primarily used as a back-end system technology for renowned financial institutions. However, it has since grown outside the business sector with an increased focus upon consumer services.What Purpose Do Fintechs Serve?The main purpose of fintechs would be to suppl Read this Term sector.