Royal Mail buys digital businesses to spur growth

The Financial Times reports that Royal Mail is acquiring or investing in small ecommerce and technology startups:

royalmailThe FTSE 100 group has made several acquisitions since the start of last year, from a mobile fashion app to a start-up selling software for online retailers in China.

While the deals are modest in size, they illustrate how Royal Mail, which was privatised in 2013, is sowing seeds in new areas that it hopes will provide future revenue growth.

“They’re buying innovative software and expertise,” says Robin Byde, analyst at Cantor Fitzgerald.

“It all speaks to the issue of declining core mail but is also a response to growing ecommerce flows. They’re positioning themselves in the plumbing space for the global supply chain.”

Source: Royal Mail buys digital businesses to spur growth – FT.com