Global Marketplace, the owner of Click Frenzy, is poised to make an acquisition and has strengthened its board ahead of an initial public offering next year.
12 Jul 2021
Global Marketplace, the owner of cyber-sale pioneer Click Frenzy, is poised to make an acquisition and has strengthened its board ahead of a proposed initial public offering next year.
Global Marketplace, which also owns publisher and e-commerce data and insights platform Power Retail, is close to finalising the purchase of another e-commerce business, which is expected to increase annual revenues to about $20 million and boost customer numbers.
The company is about 60 per cent owned by founder Grant Arnott and almost 40 per cent owned by John Wylie’s Tanarra Capital, which acquired a stake in 2016.
It has appointed to the board RedBalloon founder and Shark Tank investor Naomi Simson and Justin Hind, the chief executive of digital marketing company CHE Proximity, alongside Tanarra Capital principal Anna Shave.
Mr Arnott has been appointed executive chairman and head of innovation and has handed the chief executive reins to Nathan Brown.
“We’re very excited to have two board directors like that to supercharge our growth,” said Mr Arnott.
Founded in 2012, Click Frenzy has 1.7 million members and has been growing at more than 40 per cent a year. Click Frenzy recently launched an online marketplace, Click Central, run by Mark Gray, who helped establish marketplaces for Catch Group and The Market in New Zealand.
Global Marketplace’s revenue comes from advertising during Click Frenzy events, which include Click Frenzy Mayhem in May, Julove in July and The Main Event in November.
Global Marketplace also generates revenue from Power Retail, a trade media site for the e-commerce industry, which has been transformed into a data analytics platform where retailers can benchmark their performance against the industry.
“Our existence is all about stimulating e-commerce activity and we see a lot of opportunity there,” said Mr Arnott.
“[The proposed acquisition] is a business we think gives us a much bigger footprint and access to new customers and a new market – we think it’s very exciting,” he said.
“It also significantly increases our revenue base, which gives us a launch pad to keep growth going.”
Click Frenzy was the first industry-wide cyber sales event in Australia and set the scene for the launch of Black Friday and Cyber Monday promotions.
“[Click Frenzy] owns two of the four biggest e-commerce days in the calendar, the other ones being Boxing Day and Black Friday,” said Mr Arnott.
The purpose of the IPO would be to raise new capital to fund further growth.
“We see huge opportunities, Mr Arnott said, citing the shift towards e-commerce during the pandemic.
Online retailing rose 56 per cent to $50 billion last year, and now represents about 16 per cent of discretionary spending. Online growth has slowed this year as shoppers have returned to stores, but e-commerce has received another shot in the arm from lockdowns in Melbourne and Sydney in June and July.
“We’re coming out of the pandemic much stronger than other businesses… whilst e-commerce [growth] is slowing down [after the boom in 2020] we’re accelerating because retailers need stimulus channels like ours more than ever,” Mr Arnott said.
“We see a lot of growth ahead and we have grand ambitions,” he said.
“We want to really accelerate the growth of our everyday marketplace Click Central, increase the size of our loyalty program and look at other acquisition opportunities, knowing there’s going to be a lot of competition – we want to emerge one of the big winners.”