London-based online trading platform Freetrade told CNBC Tuesday that it’s agreed to buy the U.K. customer book of Stake, an Australian investing app.

The move is part of a broader bid from Freetrade to bolster its domestic business and comes as British digital investment platforms face rising competition from new entrants — not least U.S. heavyweight Robinhood.

The startup told CNBC exclusively that it entered into a transaction with Stake to take on all of the company’s clients and move all assets the firm manages in the U.K. over to its own platform.

Freetrade and Stake declined to disclose financial information of the deal, including the value of Stake’s U.K. customer book.

Stake, which is based in Sydney, Australia, was founded in 2017 by entrepreneurs Matt Leibowitz, Dan Silver and Jon Abitz with the aim of providing low-cost brokerage services to retail investors in Australia.

The company, which also operates in New Zealand, launched its services in the U.K. in 2020. However, after a recent business review, Stake decided to focus primarily on its Australia and New Zealand operations.

Following the deal, customers of Stake U.K. will be contacted with details about how to move their money and other assets over to Freetrade in “the coming weeks,” the companies said. Customers will still be able to use their Stake account until assets and cash are transferred to Freetrade in November.

Freetrade operates primarily in the U.K. but has sought to expand into the European Union. It offers a range of investment products on its platform, including stocks, exchange-traded funds, individual savings accounts, and government bonds. As of April 2024, it had more than 1.4 million users.

Earlier this year, CNBC reported that the startup’s co-founder and CEO, Adam Dodds, had decided to depart the company after six years at the helm. He was replaced by Viktor Nebehaj, the firm’s then-chief operating officer.

Freetrade was a beneficiary of the 2020 and 2021 retail stock investing frenzy, which saw GameStop and other so-called “meme stocks” jump to wild highs. In the years that followed, Freetrade and its rivals, including Robinhood were impacted by higher interest rates which hammered investor sentiment.

In 2022, Freetrade announced plans to lay off 15% of its workforce. The following year, the firm saw its valuation slump 65% to £225 million ($301 million) in an equity crowdfunding round. Freetrade at the time blamed a “different market environment” for the reduction in its market value.

More recently, though, things have been turning around for the startup. Freetrade reported its first-ever half year of profit in 2024, with adjusted earnings before interest, tax, depreciation and amortization hitting £91,000 in the six months through June. Revenues climbed 34% year-over-year, to £13.1 million.

“I’m focused on scaling Freetrade into the leading commission-free investment platform in the UK market,” CEO Nebehaj said in a statement shared with CNBC. “This deal shows our commitment to capitalise on opportunities for inorganic growth to reach that goal.”

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

Freetrade currently manages more than £2 billion worth of assets for U.K. clients. Globally, Stake has over $2.9 billion in assets under administration.

Robinhood, a far larger player in the U.S. with $144 billion in assets under management, launched in the U.K. in November 2023 to much fanfare. Earlier this month, the company launched a securities lending scheme in the U.K., in a bid to further entice prospective British clients.