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Leading UK Online Card Retailer, Moonpig, Files for IPO
British online greeting card company, Moonpig, is filing for an IPO as the online boom continues strength to strength.
The British online greeting card company has raised $884 million in its London listing. The company’s sales almost more than doubled in the six months ending October 31st.
Many businesses have relied on Moonpig’s pureplay service as offices remain closed across the globe in favour of working from home.
The company currently holds 60 percent of the market share in the UK and a 65 percent share in The Netherlands, where it’s known as ‘Greetz’. It has plans to expand further in Australia and the United States, where it is currently operating on a small level.
Will the Honeymoon of Moonpig Last?
The online retailer has experienced massive growth in revenue as the online boom continues across the world.
However, the business has said that investors should be warned of looming competition, as brick-and-mortar retailers continue to rely on online sales amid the pandemic.
Some of its major competitors include Cardly, WHSmith’s Funky Pigeon and Thortful.
Despite this, Moonpig has seen its total orders double to 33 percent compared to the same period in 2019.
“As the market-leading platform, with a strong track record, and a huge opportunity to grow, we are confident about our decision to become a publicly-traded business,” said Nickyl Raithatha, the CEO of Moonpig.
Furthermore, Raithatha explained that the company’s ‘unique predictive insights into gifting intent’ make it ‘as effortless as possible’ for online users to send and receive gift cards online.
A Market Leader?
“Moonpig could become the go-to online market place for gifting,” said Oliver Brow, a Fund Manager with RC Brown. “It’s remarkable to see a listing by a company that owns this much market share. They effectively created the segment.”
Moonpig was founded in 2000 by Nick Jenkins, who was made famous by the British TV show, Dragon’s Den, which he featured on the 13th and 14th seasons. The name, Moonpig, came from the Founder’s nickname in high school.
Jenkins sold Moonpig in 2011 for an estimated £120 million ($216 million). Private equity firm, Exponent, acquired the retailer in 2016. Currently, the Moonpigvaluaion target sits at £1.2 billion ( $1.8 billion).
Moonpig has hired Citigroup and JPMorgan to coordinate the float, with Numis Securities, HSBC and Jefferies International have been appointed as book runners.