Fruugo have turned in some startling results with Fruugo revenue up 110% year-on-year to £65m, building on very strong prior year comparatives; growth of over 230% on a two-year basis. The D2C model offers an opportunity for Brands and Retailers to tap into overseas customers with minimal disruption to their existing business and no need to invest in translation and currency conversion solutions to sell globally.
Total transaction value through the Fruugo platform increased by 87% YoY to £255m. 96% of all transactions were cross-border (FY21: 91%) and 83% of all transactions were cross-currency (FY21: 82%).
The volume of retailers using the Group’s technology platform rose by 63% YoY, and the number of shoppers buying through Fruugo from around the world increased by 114% YoY to just under 7 million in FY22
The reason this is interesting is that the pandemic is largely over and many businesses have stalled, with everyone from Facebook and Google to Amazon reporting staff layoffs in a slowing economy. Fruugo, so far, appear to be bucking the trend with their latest results and, more importantly than the marketplace itself being profitable with the growth in Fruugo revenue, are showing a significant increase in total transaction value which means more sales for you if you’re selling on the platform.
A slight caveat is that the number of sellers on Fruugo also grew significantly, but as sellers only grew (by a very impressive) 63%, sales through Fruugo grew 87% so there is plenty of business for both existing Fruugo merchants and those just signing up to the marketplace.
This growth highlights the strength of Fruugo’s highly diversified international marketplace, which enables:
- Retailers to tap into global online search and shopping trends, reduce the friction and complexities of cross-border trade and access new customers in countries they would not otherwise be able to reach.
- Shoppers to access global product supply with price transparency, shopping securely and in their local language and currency.
Fruugo’s agile technology and real-time model ensures shoppers are dynamically matched with retailers around the world, only offering for sale products that are in stock and ready to ship at the moment of order. The retailers fulfil the orders directly, and consequently Fruugo itself never holds stock nor is it directly subject to logistics or supply chain shortages.
We are delighted to report another year of exceptional growth. Due to substantial and growing demand for Fruugo’s multi-award-winning services, coupled with our high-quality execution, we have more than doubled the size of our business in just one year.
Fruugo’s mission is simple: to enable retailers anywhere to sell to shoppers everywhere, enabling retailers to access international demand for their products that they wouldn’t otherwise be able to find. Our proprietary technology and data science expertise, in combination with the huge range of product categories available through our platform, means that Fruugo is able to continually tap into worldwide consumer demand for sought after products and categories.
The benefits of our very diverse, cross-border marketplace model have been particularly profound in recent times and are reflected in our outstanding growth rates. While many traditional and e-commerce retailers and brand owners have grappled with external supply chain headwinds and stock availability, Fruugo has been able to deliver record revenues, by enabling the retailers using our ‘no-sale no-fee’ platform to find new shoppers all over the world.
Fruugo already powers the global trading of thousands of ‘direct to consumer’ businesses and has the capacity to serve many, many more. As we enter 2023, we remain focused on further enhancing our platform, including developing the tools retailers use to join Fruugo, and continuing to develop the user experience on our websites.
These are very exciting times for Fruugo. Our high quality and experienced management team and board of directors are focused on building a large scale and world class global marketplace business. Fruugo is fast-growing, award winning, truly international, asset light and built for scale. We look forward to continuing our strong growth trajectory in 2023 and beyond.– Dominic Allonby, Executive Chairman, Fruugo