Community-owned social e-commerce platform WeShop has said it remains on track for a New York IPO next year despite market turmoil as the British tech firm aims to crack the US. (WeShop/PA)
Community-owned social e-commerce platform WeShop has issued its first share buybacks, with one buyer making £9,000 net, but the British tech company said it was shelving its IPO plans due to stock market turmoil.
The world’s first customer-owned shoppable social network is moving its listing to the end of the year if market conditions allow, after originally planning to launch by July.
Chairman Richard Griffiths told the PA news agency the delay was due to market volatility sparked by the collapse of US lender Silicon Valley Bank in March.
With the upheaval in America’s IT sector, which has caused valuations to plummet and tens of thousands of employees to be laid off at companies like Google, it might even reconsider compromising the tech-heavy Nasdaq index in New York for its IPO ) to choose , Amazon, Microsoft and Facebook owners Meta.
That could see the group turning to the London market instead, although Mr Griffiths said the Nasdaq is still the company’s top choice and he is working towards a test launch of the platform in the US in the third quarter ahead of the expected IPO.
We are aiming for the end of the year but need to be fluid, especially given market conditions
Richard Griffiths, WeShop
Speaking on the IPO plans, Mr. Griffiths said: “We are targeting the end of the year but need to be fluid, particularly given market conditions.
“The technology sector is very difficult and the Nasdaq is not performing as well as it has before.”
He added that while WeShop is still hoping for a 2023 IPO, it will review plans if it’s “not the right moment.”
However, he insisted that whatever the listing plans, WeShop will continue to offer to buy back shares from buyers, with initial payments already made.
It said it made around a dozen share buybacks for buyers involved in the process before it officially launched last July.
One shopper was paid a whopping £9,000 for purchases made through the platform and referrals, with the lowest payout being £250.
The story goes on
WeShop gives shares to buyers on the platform, offering them 20% of any purchase price as investment shares to redeem after 12 months of ownership.
It ultimately plans to give away up to 90% of its business to buyers, with the goal of having its shares publicly listed to rival the might of retail giants like Amazon.
The group – whose supporters include Cazoo founder and boss Alex Chesterman, Betfair co-founder Andrew Black, ex-Formula 1 driver Nigel Mansell and his son Leo – plans to launch a social media ad campaign over the summer media and launch on television.
It now has around 115,000 registered users and more than £14million in purchases have been made through the platform.
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