OfferUp raises $120M, will acquire rival Letgo; OLX Group to own 40% of combined entity – GeekWire
It is a major day for OfferUp.
The Bellevue, Clean.-dependent cell marketplace startup nowadays declared a $120 million funding spherical and an arrangement to get Letgo, a rival commerce app that also allows individuals acquire and provide utilized goods.
OLX Group, the on-line classifieds company of Prosus, led the financial commitment spherical the Netherlands-dependent organization was by now a vast majority trader of Letgo. It will individual 40 percent of the new merged entity when the offer is permitted by regulators.
Present OfferUp investors Andreessen Horowitz and Warburg Pincus also participated in the financial commitment spherical, which provides overall funding to date for OfferUp to $380 million.
The firm declined to disclose its valuation it was valued at $1.4 billion after its most new funding spherical in August 2018, in accordance to PitchBook.
“My vision for OfferUp has often been to establish a firm that can help individuals join and prosper,” OfferUp CEO Nick Huzar reported in a weblog post. “Bringing alongside one another the strengths and resources of OfferUp and letgo is an unbelievable prospect that will help us attain our objective of building the largest, simplest, and most honest marketplace for neighborhood purchasers and sellers.”
OfferUp and Letgo strategy to merge their marketplaces with a merged U.S. buyer foundation of additional than 20 million regular active users. OfferUp will function the merged corporations Huzar will carry on as CEO and chairman.
Letgo’s company outside the house of North The united states will be separately owned and operated as part of OLX Group. Letgo experienced raised $975 million after reeling in a $500 million spherical in 2018. The 5-yr-aged startup is dependent in New York City and employs additional than 300 individuals, in accordance to LinkedIn.
“letgo and OfferUp have often shared the very same core vision for how significant America’s secondhand financial system can develop into – harnessing tech innovation to bring about an terribly positive effect on consumers’ wallets and also on the environment,” Letgo co-founder Alec Oxenford reported in a statement. “Bringing our apps alongside one another moves us a lot closer to that vision.”
OfferUp, started in 2011 and rated No. 14 on the GeekWire 200, has 280 workers in Bellevue and Miami. Huzar, a previous DealSpringer CEO and T-Cellular products manager, was encouraged to launch the firm after on the lookout at all the goods close to his household after the delivery of his daughter.
OfferUp competes with Craigslist, eBay, Facebook, and other marketplace apps.
In his weblog post, Huzar pointed out the COVID-19 crisis.
“I want to admit that the world is upside down proper now,” Huzar reported. “This pandemic is impacting all of us, our workers, our partners, and our local community customers and will carry on to do so for some time. For nearly 10 yrs, OfferUp has strived to keep a secure, content, and healthy local community — equally in-individual and on-line — for purchasers, sellers. This news can help us to carry on to innovate and mature, in spite of these hard periods, and carry on to provide on that promise.”
OfferUp reported buying exercise for goods individuals use at household has enhanced appreciably amid the COVID-19 outbreak. There are also additional purchasers employing nationwide shipping.
Company Insider claimed last week that OfferUp removed hand sanitizer toilet paper protective masks and disinfecting goods from its platform last week to discourage value gouging. Amazon is also working with the very same issue it has removed additional than 500,000 offers from its marketplace owing to coronavirus-dependent value gouging.