London Daily

Focus on the big picture.

WeShop makes first share buyback payouts to shoppers, but delays IPO

WeShop makes first share buyback payouts to shoppers, but delays IPO

The shoppable social network said early customers on the platform have seen share buyback payouts of between £250 and £9,000.
Community-owned social ecommerce platform WeShop has handed out its first share buybacks, with one shopper netting £9,000, but the UK tech firm revealed it is putting back its flotation plans due to stock market turbulence.

The world’s first shoppable social network, which is owned by customers, is pushing back its listing to the end of the year, if market conditions allow, having originally planned to float by July.

Chairman Richard Griffiths told the PA news agency the delay is due to market volatility sparked by the collapse of US lender Silicon Valley Bank in March.

It may even reconsider choosing the Nasdaq tech-heavy index in New York for its initial public offering (IPO), given the IT sector shake-up in America that has seen valuations plummet and tens of thousands of workers laid off across the likes of Google, Amazon, Microsoft and Facebook owner Meta.

This could see the group turn instead to the London market, although Mr Griffiths said the Nasdaq is still the firm’s top choice and he is working towards a trial launch of the platform in the US during the third quarter, ahead of its expected IPO.

"We're aiming for the end of the year, but having to be fluid, particularly because of market conditions"

On the IPO plans, Mr Griffiths said: “We’re aiming for the end of the year, but having to be fluid, particularly because of market conditions.

“The technology sector is very difficult and the Nasdaq is not performing as well as it has done.”

He added that while WeShop is still hopeful of a 2023 stock market debut, it will review the plans if it is “not the right moment”.

But he insisted WeShop will continue offering to buy back shares from shoppers regardless of the listing plans, with the first payments already made.

It said it has made around a dozen share buybacks for shoppers who were involved in the trial before it launched officially last July.

One shopper was handed a hefty £9,000 for purchases via the platform and referrals, with the lowest payout standing at £250.

WeShop gives shares in the business to shoppers on the platform, offering them 20% of every purchase price as investment shares, which they can cash in after 12 months of ownership.

It is ultimately planning to give away up to 90% of its business to shoppers, with the aim of having its shares publicly listed on the stock market to take on the might of retail titans such as Amazon.

The group – whose backers including Cazoo founder and boss Alex Chesterman, Betfair co-founder Andrew Black and former Formula One driver Nigel Mansell and his son Leo – is planning to launch an advertising campaign across social media and on television over the summer.

It now has around 115,000 registered users and more than £14 million of purchases have been made through the platform.

Related Articles

London Daily
Iran Sentences Nobel Laureate Narges Mohammadi to 1-Year Prison Term for Propaganda
Woman Suing UK Intel Services Denies China Spy Allegations
News roundup
Good day, everyone! We've got some gripping stories for you today, spanning from the Middle East to Europe, and even a touch of Hollywood.
Britain’s Refugee Visa Rules Stranding Children in War Zones
UK Elections Predict ‘Electoral Extinction’ for PM Sunak’s Conservative Party
Italian Activist Ilaria Salis Returns Home After Election to European Parliament
Good morning!
England Faces Serbia in Euro Opener with Defensive Concerns
Dermatologist Warns Against Sunbed Usage
Fake Pro-Reform UK Social Accounts and Their Influence on Elections
UK Man Jailed for Non-Consensual Condom Removal
Reform UK Surpasses Conservatives in Historic Poll
US, Britain, Canada Accuse Russia of Interference in Moldova’s Election
Taylor Swift Fans Create Seismic Activity in Edinburgh
Sunak Aide Under Investigation for Election Bet
Labour Leader Starmer Focuses on Wealth Creation for Upcoming UK Elections
G7 to Use Frozen Russian Assets for $50 Billion Ukraine Aid
Anti-Israel Irish MEP Clare Daly LOST her seat in the EU Election
Johnson & Johnson Settles Talc Safety Claims for $700 Million
EU Urged to Welcome Skilled Russians to Weaken Putin
EU Elections Overview: Far-Right Gains and Major Political Shifts
Israel Rescues Four Hostages from Gaza
Emmanuel Macron Calls for Snap Election
Jordan Bardella: Young Far-Right Leader Poised for Future Political Influence in France
World's Oldest Privately Owned Book Auctioned for $3.8 Million
Animal Rights Activists Deface King Charles' Portrait in Protest
Dutch Military Intel Uncovers Extensive Chinese Cyber Espionage
Turkish Student Arrested for Using AI to Cheat in University Exam
Rise in Dengue and Other Mosquito-Borne Diseases in Europe Due to Climate Change
EU Elections Overview: Far-Right Gains and Major Political Shifts
Far-Right National Rally Dominates France's EU Vote
Macron Calls Snap Legislative Elections After Far-Right Victory
Far-Right Gains Significantly in EU Election
UK Job Market Shows Signs of Recovery
Orban’s Fidesz Party Wins Majority in Hungary’s EU Elections as New Challenger Emerges
Meloni's Far-Right Party Wins European Elections in Italy
Key Insights from the European Union Elections
European Union Elections and Rise of Far-Right Parties
England Loses Over 260,000 Social Rent Homes in a Decade
Campaigners Urge Government to Block Shein's FTSE Listing
First NHS AI-Run Physiotherapy Clinic Launches This Year
British TV Presenter Michael Mosley Found Dead on Greek Island
Ukrainian Forces Claims First Strike on Russia's Su-57 Fighter Jet
Macron Dissolves Parliament and Calls Snap Elections
Russia Adds Yulia Tymoshenko to Wanted List
UK Foreign Secretary David Cameron Tricked by Hoax Caller Posing as Former Ukrainian President
Kate Middleton's Absence from Colonel's Review Due to Chemotherapy
UK Foreign Secretary Deceived by Prank Video Call
Sunak Criticised Over D-Day Exit in BBC Debate