Fruugo returns to profitability after transition year

In Fruugo’s latest accounts the company has bounced back from their operating loss of £10. 8m after exceptional items in 2024, reporting an operating profit of £2m in their 2025 accounts, which they describe as a ‘year of transition’.

This was due to increased regulation including the Digital Services Act (from Feb 2024) and GPSR (from Dec 2024), increasing responsibilities for product safety, seller transparency, platform performance and customer experience.

As Fruugo is largely attractive as a cross border marketplace, the regulatory changes perhaps impacted them more than marketplaces with a stronger domestic trade. Notably, turnover is way down again, at £39. 6m, compared to £56. 4m in 2024 and £79.

4m in 2023, as their exercise to clean up the SKU and retailer database in the second half of 2024 continued to impact, setting a low baseline from which their 2025 year started. Total Transaction Volume was down to £95. 4 in 2025 compared to £133.

1m in 2024 Fruugo report that whilst they generated sequential growth from a low point in February 2025 and once again started to onboard new sellers, it was November 2025 before the marketplace returned to year on year growth.

Cost savings including head count (down to 165 from 189 in 2024) were implemented to align Fruugo’s operating cost to lower activities while maintaining critical capabilities.

Fruugo believe there is opportunity to provide services to many additional retailers and, following the removal of non-compliant sellers, are working to bring new retailers to the platform as well as sell more products on behalf of existing retailers.

However, new retailers need to be compliant with regulations or they’ll also be removed from the marketplace.