The funding via convertible loan note allows the company to build up its finance without having to affix a new valuation amid difficult market conditions.
Freetrade was last valued at £650m, according to a Financial Times report.
Dodds told the publication: “We didn’t price the round on purpose. By doing a convertible loan note, you take that out of the equation. It’s choppy markets. To zero in on a valuation at this point is maybe not that helpful.”
The fresh capital infusion strengthens Freetrade’s balance sheet as it looks to accelerate its product development and cater to its customers across the UK and Europe.
Freetrade claims to have more than 1.3 million users in the UK.
According to a statement by the firm, its revenue increased more than sixfold to £15.1m and its assets under advisement (AUA) surpassed £1bn in 2021 while the trading volumes for the year exceeded £3.7bn.
Recently, Freetrade rolled out several new features to its products, including Freetrade Web and highly requested stocks.
It also obtained a licence from the Swedish financial regulator to expand its operations to Sweden as part of its larger European expansion strategy.
The firm also recently onboarded its first customers in Sweden and is preparing to expand the rollout of its Swedish beta offering in the coming months.
Freetrade founder and CEO Adam Dodds said in a blog post: “With this new capital, we’re excited to accelerate our international plans and give access to markets in a responsible and trusted way.”
In 2019, Freetrade closed its $15m Series A investment in funding round.
In March 2021, the firm raised a $69m Series B investment round led by New York-based growth equity firm, Left Lane Capital.
L Catterton and Draper Esprit also participated in the oversubscribed round, which contained a secondary opportunity for existing shareholders.