'Recommerce' site MusicMagpie plots London market swoop

·2-min read

The "recommerce" website MusicMagpie is plotting a swoop onto the London stock market as it becomes the latest digital business to take advantage of a surge in revenues during the coronavirus pandemic.

Sky News has learnt that MusicMagpie, which is one of Britain's biggest recyclers of consumer electronic devices, has appointed Peel Hunt and Shore Capital, the investment banks, to spearhead a flotation.

An initial public offering of the business, which is backed by the private equity firm NVM, is expected next year.

The valuation being sought by its investors and advisers was unclear on Wednesday.

Launched in 2007, MusicMagpie pays consumers for unwanted products including DVDs, mobile phones, tablets and games consoles.

The company, which is run by founder Steve Oliver, claims to recycle 95% of the products it acquires from consumers, and uses parts from the remaining 5% to refurbish other items.

MusicMagpie has established itself as the biggest global third-party seller in the history of Amazon Marketplace, achieving 10 million global feedbacks across the online retail behemoth's platforms.

It says it is also the biggest global seller in eBay's history, while also selling direct to consumers through its own online stores.

People close to MusicMagpie said it had benefited from consumers' desire to declutter their homes during the COVID-19 crisis, while also raising cash during more challenging economic times.

Those favourable market dynamics are said to have fuelled a surge in revenues during the last six months.

A spokeswoman for the company said: "After a sustained period of strong performance, MusicMagpie is reviewing a number of attractive alternatives to best support our continuing rapid growth.

"Helping consumers stay connected, work from home and be entertained for less, while enabling them to raise fast cash from unwanted items in an easy process, has been especially important recently.

"Our circular economy model is popular with many millions of users and we look forward to the future with confidence under our mantra of being 'Smart for you, Smart for the Planet'."

Previously owned by LDC, MusicMagpie explored an IPO in 2018 before electing to remain privately owned.

If it does float successfully, MusicMagpie would join a host of tech companies looking to go public in London next year.

Others include the ratings platform Trustpilot, cybersecurity services group Darktrace, and Deliveroo, the food delivery app.