- ShopBack’s revenue dropped 20% to $87.7 million.
- Voucher declines signal challenges as ShopBack targets an IPO within years.
- Management remains confident in rebounding growth to regain public market readiness.
Singapore-based rewards platform ShopBack saw its total revenue decline 20% year-over-year to $87.7 million for the financial year ending March 2023. The company attributed the falling top line predominantly to a more than 50% decrease in voucher sales.
ShopBack financial challenges
ShopBack earns commissions from both direct voucher purchases and sales made on behalf of merchant partners.
The startup cited accounting changes that now recognize more consignment voucher revenue on a net rather than gross basis. Losses also mounted over 29% driven by one-off expenses like M&A and talent acquisition.
Future prospects amidst expansion
The tough year follows ShopBack’s move last December to raise $30 million in preparation for a future IPO. But the company says it retains over three years of cash runway similar to current burn rates.
ShopBack also continues geographic expansion efforts, recently launching services in Germany to complement operations across Southeast Asia and Australia.
Management remains confident in rebounding growth for the financial 2024, targeting public market readiness within the next few years. But the voucher revenue decline in particular signals potential marketplace challenges.
