E-commerce platform Notonthehighstreet is reportedly exploring the possibility of a sale as its revenues continue to rise amid the ongoing COVID-19 pandemic. Sources have revealed that the company is working closely with an investment bank to potentially hold an auction that could value it at around £200 million or more. Founded in 2006 by Holly Tucker and Sophie Cornish, Notonthehighstreet, also known as Noths, has quickly become a trusted destination for unique and niche products that are not easily found elsewhere. Acting as a marketplace for approximately 5,000 small business owners, it offers a wide variety of products including jewellery, homewares, gifts, clothing, beauty items, and gourmet foods.

The extraordinary business model and success of Notonthehighstreet in catering to a specific market segment make it an appealing prospect for potential buyers. Private equity groups and trade bidders are both expressing interest in acquiring the platform. Despite its popularity and increasing revenues, the company has struggled to generate a profit. In the fiscal year that ended in March 2019, Notonthehighstreet reported a net loss of £1.5 million, with revenues remaining relatively stagnant at just over £35 million.

Currently, Notonthehighstreet is backed by various investors, including Germany’s Hubert Burda Media, Index Ventures, and a unit of asset management giant Fidelity. Although the company has not officially commented on the potential sale, industry experts anticipate a bidding war among interested parties. The surge in online shopping during the pandemic has presented a unique opportunity for e-commerce businesses, and Notonthehighstreet seems to have successfully capitalized on this trend. With its strong market position and growing revenues, the sale of the platform could serve as a significant milestone in its journey towards further expansion and continued success.

Useful Links:
1. Notonthehighstreet
2. Sky News