1️⃣ Trouva's acquisition saga
Trouva, the platform connecting offline boutiques with online shoppers, has just been acquired by Fy!, a Hoxton Ventures-backed AI-enabled marketplace. This marks Trouva's third ownership change in just two years, following a rocky period that saw its first acquirer, Made.com, go into administration. Trouva wasn’t included in the rescue deal by Next, but was quickly snapped up by Re:store early last year, only to be acquired again by Fy!. "It's been quite the rollercoaster," admits Tom Beverley, Fy!'s CEO.
2️⃣ Financial landscape and strategy
The acquisition comes at a time when investments in European consumer marketplaces have plummeted to $9.3B in 2023 from $35.4B in 2021, reaching their lowest since 2018. Both Fy! and Trouva are working towards profitability, spurred by Fy!’s recent advancements in AI-driven product recommendations and search capabilities, which have significantly boosted user engagement and revenue. "These tools have already demonstrated their value, with a 180% increase in product engagement," explains Beverley.
3️⃣ Economic climate and future plans
Despite the tough economic times, signs of recovery are on the horizon. "Consumer confidence is on the mend, and lower inflation might lead to decreased interest rates, increasing disposable income," Beverley suggests. This optimism is reflected in Fy!’s ongoing plans for further acquisitions, particularly in the larger US market, where 40% of Fy!'s revenue is generated. Beverley also hinted at potential future fundraising efforts in the US to capitalize on more favorable market conditions.
4️⃣ What's next for Trouva?
While Trouva will continue to operate under its own brand, it will integrate Fy!’s AI features to enhance customer experience. This strategic move aims to leverage both platforms' strengths, driving towards the shared goal of profitability by the year's end. "Integrating our AI capabilities with Trouva’s unique market position will enhance both user experience and operational efficiency," Beverley concludes.
Will Trouva finally stabilize under Fy!'s umbrella?
