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 拢56.4 million for the year to 31st December 2024, down from 拢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鈥檚 Digital Services Act (DSA) and Digital Markets Act (DMA).
Fruugo operates an international marketplace connecting consumers with retailers across more than 40 countries.聽
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 鈥渕aterial impact鈥� on volumes and revenue.
The business recorded an operating loss before exceptional items of 拢11.2m, compared with an operating profit of 拢6m in 2023.
Adjusted EBITDA fell to 拢4.1m, down from 拢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.聽
Fruugo ended the year with 拢14.5m in cash, although net liabilities widened to 拢4.1m, compared with net assets of 拢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.聽
Further regulatory changes came into effect in 2025, including new obligations under the EU鈥檚 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 拢8.5m of net revenue in December alone, and expressed confidence that the platform鈥檚 enhanced compliance and trust framework would support long-term growth聽
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.