The founder of Mumsnet is in discussions with private equity investors regarding the potential sale of a stake in the online community for parents that she established over twenty-five years ago. Justine Roberts, who founded Mumsnet in 2000, is collaborating with advisors on a process that may lead to her relinquishing control of the business, as reported by Sky News.
According to sources in the City, talks with potential investors have been ongoing for several weeks, although they are still in the early stages. The identity of the firms engaging with Mumsnet remains unclear. Since its inception in 2000, Mumsnet has expanded into an online community with approximately 8 million monthly users.
«Justine Roberts shared with Sky News, «Over the years, we have received numerous proposals, but we have remained independent as trust and community integrity are fundamental to Mumsnet. If we decide to bring in a partner to assist us in expanding internationally, our primary focus will be on finding the right fit rather than rushing into a deal.»
The majority of Mumsnet’s users are women between the ages of 25 and 45. The company currently employs around 75 individuals, with Justine Roberts transitioning from the role of chief executive to executive chair in August of last year. Sue Macmillan, formerly the chief operating officer, has taken over as CEO.
Mumsnet serves as a platform for mothers to exchange experiences, viewpoints, and practical advice. It has also developed into a campaigning organization, advocating for issues such as childcare, parental leave, women’s health, safety, and children’s use of technology. Additionally, the company owns Gransnet, which offers a similar service tailored to grandparents.
According to financial statements filed at Companies House for the year ending December 31, 2024, Mumsnet generated a turnover of £9.4m, marking a nearly 20% increase from the previous year. Post-tax profit rose by 14% to £2.65m, and users collectively spent 45.7 million hours on the platform, representing a 6.5% increase. Among the new products mentioned was the launch of MumsGPT, an AI-driven consumer insights tool.
Sources suggest that the sale of a stake in the business is intended to provide capital for an international expansion strategy for Mumsnet. While the exact valuation of the business remains unknown, industry insiders speculate that it could be valued in the tens of millions of pounds range. In the event of selling a controlling interest, Justine Roberts is expected to maintain involvement as an ambassador or advisor to the company.
Mumsnet is reportedly receiving guidance from FirstCapital, an independent boutique, during the negotiations with potential investors.
SOURCE