Valutrades Shareholders Inject Another £1.6M as Fresh Capital

The existing shareholders of London-based Valutrades Limited, which operates as an FX and CFDs broker, have injected £1.6 million (US$2.1 million) into the company by allocating fresh shares.

A Move after a Rough Year

According to the latest Companies House filing, the capital injection came from two share allotments, one for £825,000 and the other for £775,000. The fresh allotment has increased the company's total share capital to £10.82 million.

“The newly raised funds will be used to ensure we have a strong capital base and to expand into new markets now that we have completed our recent rebrand,” Graeme Watkins, CEO at Valutrades, told Finance Magnates.

The Valutrades brand operates under two licenses, one from the United Kingdom's Financial Conduct Authority and the other from the regulator in the Seychelles. The offerings under both entities are more or less the same: trading services with margin forex and contracts for differences of other asset classes.

The Valutrades website is available in five languages: English, Spanish, Portuguese, Mandarin, and Japanese, indicating that it has an extensive global clientele.

Multiple Cash Injections

Interestingly, the latest capital injection came only four months after the Valutrades shareholders injected £1 million into the company.

Another £1 million was injected last October by existing shareholders, led by Anil Bahirwani, the Founder of Valutrades and a couple of other financial services companies. Aman Lakhiani, an existing investor, and Graeme Watkins, who has been running the broker since 2015 as the CEO, continue to hold stakes in the brokerage. Those proceeds went towards the brokerage's rebranding.

Finance Magnates recently reported that Valutrades's annual revenue in 2023 plummeted by almost 80 percent to £1.5 million. The company further reported a net loss of nearly £4 million. In the Companies House filing, the broker cited that “2023 was a challenging year” due to “market volatility confined to large ranges,” which resulted in traders shifting to products related to equities.

“Most of the revenue dip is related to a slowdown in some Asian markets and this is being addressed by moving into new markets,” Watkins added.