This cashback co-operative hit the headlines last week after Michael Murphy, who shared a £175m earn-out from the sale of Friends Reunited, completed a management buy-in and became Quidco’s executive chairman.
Cashback websites reward members when they purchase goods and services via their affiliate links. To differentiate itself from other cashback sites, Quidco charges members £5 a year to join but gives them 100 per cent of the referral commission it receives from retailers through their affiliate marketing schemes.
Quidco was set up in 2005 and has 500,000 regular users. It claims it saved them £25m on their online shopping last year, while generating more than £250m in online sales for retailers. Murphy says that he wants to quadruple the retail sales generated through the site to more than £1bn to save customers £100m. His previous MBI experience at Friends Reunited saw him increase profits five-fold.