Grocery price comparison app Frugl plots course for IPO
ASX aspirant Frugl is a price comparison tool that lets grocery shoppers compare Coles and Woolworths specials — and gives retailers behavioural shopping data.
The app — now raising seed capital to build out its user interface and add new features — hopes to undertake an initial public offer later this year ahead of an ASX listing by September.
Founder Ramzi Abboud told Stockhead the platform brought savings up to 30 per cent on average grocery bills.
Up to 70 per cent of Australians pay close attention to supermarket specials according financial comparison site Canstar.
Mr Abboud – the father of a large family — came up with the idea while going through financial hardship.
“At times, I had just $50 to put food on the table but I would go through specials catalogues to make sure my family was looked after,” he said.
The platform’s algorithm gathers data directly from supermarket websites and compares products based on price as well as criteria such as nutritional value and ethical manufacturing.
Frugl takes no cut of the savings – it generates revenue from the behavioural data it collects.
“There is no other company getting behavioural shopping data to the degree that we are – to know what their switching preferences are and how price points affect their spend,” Mr Abboud told Stockhead.
It’s a real-time and cost-effective solution to what has been a manual process of supermarket comparisons by the retailers themselves, and uses artificial intelligence to capture the true worth of the big data sets.
So much so, the company signed Coles as its first client last month – and is continuing to pursue discussions with other majors.
“Selling data to Coles is a substantiation of our business model — showing we can provide them with competitive data that is not available from any other platform,” Mr Abboud says.
“The same goes for big brands who can benefit from capturing switching preferences, pricing and location data.”
The supermarket vertical will be the first for Frugl, before moving into potential markets of liquor, pharma and pets.