Trustpilot plots $1.4bn valuation ahead of London debut

Trustpilot has received commitments from a number of funds to act as cornerstone investors in its upcoming $1.4bn flotation, the online reviews platform said on Monday.

Confirming its planned initial public offering, Trustpilot said investors including BlackRock, FIL Investments, Caledonia and Henderson Global Investors had agreed to buy up to a total of $240m of shares, giving the firm an expected valuation of around $1.4bn on admission.

The Danish firm, which was founded in 2007 and is headquartered in Copenhagen, announced last week it was considering floating on London’s main list. The IPO is expected to raise around $50m, which the company plans to use to pay off debt. Trading is currently forecast to get underway by the end of March.

Founder and chief executive Peter Holten Muhlmann said: "We have created a technology-led platform with a business model able to support repaid growth and sustain attractive unit economics. Becoming a listed company is the natural next step for us. I am delighted with the quality of institutional support we have received."

Trustpilot reported a pre-tax loss of $12.9m in 2020, a narrowing of 2019’s pre-tax loss of $22.6m. Revenues rose 25%, to $102m, boosted by the surge in e-commerce during the Covid-19 pandemic.

Separately, listed venture capital firm Draper Esprit acknowledged the news from Trustpilot and said it would update the market further once the IPO had completed. Draper first invested in Trustpilot in 2013 and now has a holding which it valued at £80.9m at its September 2020 interim results.