Wishpond sells Viral Loops asset for $2.3 million
Wishpond Technologies, a provider of AI-enabled marketing solutions, has entered into an agreement to sell its Viral Loops asset for $2.3 million. The company stated the sale is intended to strengthen its balance sheet. Viral Loops is a platform for running referral marketing campaigns.
- Wishpond originally acquired Viral Loops in April 2022 for an anticipated total purchase price of approximately $2.3 million, the same price for which it was just sold. - The buyer of the Viral Loops asset is Emerge Commerce Ltd., which will pay Wishpond $2.1 million at the closing of the transaction. - At the time of its acquisition by Wishpond, Viral Loops had 2021 revenues of $800,000, generated from more than 700 customers, with over 15% EBITDA margins. - London-based Viral Loops was founded in 2016 by Thomas Papaspyros and Savvas Zortikis as a platform to help companies increase sales through word-of-mouth and referral marketing campaigns. - Under Wishpond's ownership, Viral Loops saw growth in key metrics; in November 2024, the company reported a year-over-year increase of over 40% in customer lifetime value and over 25% in average revenue per account. - The sale comes as Wishpond undergoes a strategic shift, focusing on its AI-enabled marketing and sales platform, particularly its fast-growing SalesCloser AI product, which has led to a decline in overall revenue as the company moves away from legacy services.
