Customer Review Platform Sees Growth
Yesterday, Trustpilot announced plans to list its shares in London when it goes public. Trustpilot is a Denmark-based customer review website which hosts over 120 million reviews for businesses in over 100 countries, with its main markets being the US and the UK. The company will sell 25% of its shares and hopes to raise $50 million. It is aiming for a market valuation of about $1.4 billion.
Trustpilot’s revenue hit $102 million last year—a 25% jump compared to the year before. The company is not yet profitable, but it reduced its losses from $22.6 million in 2019 to $12.9 million in 2020.
A Win for the London Stock Exchange
This planned offering will help London cement its role as a financial hub and a home for tech companies post-Brexit. London is competing with exchanges around the world, particularly in Amsterdam and the US, as several European tech companies look toward going public.
Moonpig, a company specializing in personalized eCards and gift deliveries, had a blockbuster IPO in London last month. Food delivery app Deliveroo is expected to launch a multibillion-dollar listing in the city in the upcoming weeks.
Trustpilot’s Post-Pandemic Future
Trustpilot’s popularity has surged during the pandemic. The ecommerce boom has caused both businesses and consumers to rely on the platform more heavily.
Trustpilot uses a “freemium” model, meaning that businesses can use some of its services at no cost, but can upgrade for a monthly fee. Nearly 20,000 businesses pay for these services, like rights to display Trustpilot’s ratings and tools for monitoring customer feedback. Analysts expect that many online shopping habits formed during the pandemic will be here to stay, so Trustpilot and other companies which support the ecommerce industry could be poised for growth.
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