OfferUp and letgo, two providers of apps to buy and sell locally, are to combine their US businesses.
The agreement includes a new $120m investment round led by OLX Group, the classifieds business of Prosus and letgo’s majority investor, along with existing OfferUp investors, including Andreessen Horowitz and Warburg Pincus. The new investment will support continued growth, product innovation, and monetization efforts. OLX Group will own 40% of the combined entity.
The combination will create a large mobile marketplace supporting more than 20 million monthly active users, with complementary product capabilities and a national presence across the United States, which will allow the users to have access to a larger network of buyers and sellers, which will increase their trading opportunity, benefit from nationwide shipping and advanced trust and safety programs. Automotive dealers will have access to a meaningfully larger potential customer base.
The combined businesses will be operated by OfferUp, which is headquartered in Bellevue, WA. Nick Huzar, OfferUp CEO, will continue to be the CEO of OfferUp and Chairman of the Board. Cofounder Alec Oxenford will join the Board of OfferUp and also serve as senior advisor to OLX Group and Prosus.
Founded by Oxenford, Jordi Castello, and Enrique Linares, letgo provides an app that makes it simple to buy and sell locally. With over 100M downloads and 400M listings worldwide since its 2015 launch, the secondhand marketplace is filled with everything from electronics, cars, and collectibles to housing, clothing, and furniture.
letgo’s business outside of North America will remain separately owned and operated as part of OLX Group.
FinSMEs
30/03/2020