Online Marketplace Fruugo Considers Sale, Hires Bankers
Fruugo, an online marketplace founded in 2006, has recently hired bankers to explore a potential sale. The company, which specializes in helping consumer brands localize their products for international audiences, has enlisted the services of DC Advisory to assist in this process.
The decision to pursue a sale comes after Fruugo was previously considered a strong candidate for a potential flotation on the London stock market. However, sources at the company have revealed that a sale is now the likeliest outcome, with the possibility of selling a minority stake also being considered.
Fruugo’s current chairman, Dominic Allonby, acquired the company in 2012 and has since grown it to a team of approximately 200 employees. The company’s success has not gone unnoticed, as it was scheduled to be presented with The King’s Award for Enterprise (International Trade) on Thursday by the Lord Lieutenant of Cumbria, where Fruugo is based.
While the valuation of the company in a potential sale remains unclear, it was previously expected to seek a valuation of several hundred million pounds in 2021 when it explored the possibility of a London listing. However, the sources have revealed that a flotation is no longer being pursued.
Fruugo’s platform hosts thousands of retailers and generated revenues of £65m in 2022. The company has declined to comment on the potential sale.
