LONDON (ShareCast) - (ShareCast News) - Primorus Investments is to make a further £675,000 equity investment in WeShop on a fully-diluted valuation to the tune of approximately £30m to grow user acquisition and engagement on the platform, it announced on Tuesday.
The AIM-listed company, which had previously invested £200k in WeShop, a global online retailer, in August 2017 on a pre-new money valuation of approximately £25m, said the funds were proposed for the use of marketing activity to enhance user acquisition and engagement on the platform with a target of over 1.0m users.

WeShop had experienced strong growth in user numbers having reached over 600,000 unique users and more than 70,000 registered ones to date, according to the Primorus's management.

Based on that trajectory of user acquisition versus digital marketing spend, management believed WeShop would surpass the mark of 1.0m registered users by the fourth quarter of 2018.

In turn, it believed the valuation of the business would be significantly higher than at present.

Management also foresaw WeShop raising additional funds by the end of the first quarter of 2018 to help it achieve its growth targets ahead of its planned IPO in late 2018.

Alastair Clayton, executive director commented: "It is very pleasing to see the great progress made by the management of WeShop since our initial investment in the summer. All key management are now in place and under the stewardship of Matthew Hammond and his accomplished senior management and product teams including CTO John Pervanas, formally CTO of QuidCo.

"Having set their Key Performance Indicator as a minimum of 1m registered users by Q4 2018 we look forward to updating shareholders on the progress WeShop makes towards this target over the coming quarters."

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