Global online marketplace Fruugo saw revenues decline sharply in 2024 as new European regulations and platform changes led to a company slump, according to newly filed accounts.
The Ulverston-based eCommerce group reported turnover of £56.4 million for the year to 31st December 2024, down from £78m in 2023, as gross merchandise value and order volumes fell across the platform.
The firm said the decline was driven by a reduction in active retailers and fewer transactions following regulatory intervention under the EU’s Digital Services Act (DSA) and Digital Markets Act (DMA).
Fruugo operates an international marketplace connecting consumers with retailers across more than 40 countries.
At the end of 2024, the platform hosted 2,300 active retailers, down from the previous year, after stricter compliance checks led to the removal of non-compliant sellers.
While management said the changes improved trust, transparency and consumer protection, they also had a “material impact” on volumes and revenue.
The business recorded an operating loss before exceptional items of £11.2m, compared with an operating profit of £6m in 2023.
Adjusted EBITDA fell to £4.1m, down from £8.8m in 2023, due to lower revenues and continued investment in platform development, compliance systems and fraud prevention.
Despite the financial setback, directors said the business model remains scalable and sustainable, highlighting that the platform continues to operate with low logistics exposure, no inventory risk and a capital-light structure.
Fruugo ended the year with £14.5m in cash, although net liabilities widened to £4.1m, compared with net assets of £11.8m in 2023.
The Companies House accounts also confirm that the business is being repositioned to prioritise compliant, higher-quality retailers and stronger governance.
Further regulatory changes came into effect in 2025, including new obligations under the EU’s GPSR and Omnibus Safety Regulations, which could continue to affect retailer participation and growth rates.
However, the directors said early 2025 trading showed signs of stabilisation, with the business reporting £8.5m of net revenue in December alone, and expressed confidence that the platform’s enhanced compliance and trust framework would support long-term growth
The group also reiterated its commitment to further technology investment, including AI-driven fraud detection, localisation tools and retailer analytics, as it looks to return to profitability.