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OfferUp raises $120M, will acquire rival Letgo; OLX Group to own 40% of combined entity

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OfferUp raises $120M, will acquire rival Letgo; OLX Group to own 40% of combined entity

OfferUp CEO Nick Huzar. (OfferUp Photo)

It’s an enormous day for OfferUp.

The Bellevue, Wash.-based cell market startup as we speak introduced a $120 million funding spherical and an settlement to accumulate Letgo, a rival commerce app that additionally lets individuals purchase and promote used items.

OLX Group, the web classifieds enterprise of Prosus, led the funding spherical; the Netherlands-based agency was already a majority investor of Letgo. It will personal 40 p.c of the brand new mixed entity as soon as the deal is accredited by regulators.

Existing OfferUp buyers Andreessen Horowitz and Warburg Pincus additionally participated within the funding spherical, which brings complete funding thus far for OfferUp to $380 million.

The firm declined to reveal its valuation; it was valued at $1.four billion after its most up-to-date funding spherical in August 2018, in keeping with PitchBook.

“My imaginative and prescient for OfferUp has at all times been to construct an organization that helps individuals join and prosper,” OfferUp CEO Nick Huzar stated in a weblog publish. “Bringing collectively the strengths and sources of OfferUp and letgo is an unimaginable alternative that can assist us attain our objective of making the most important, easiest, and most reliable market for native patrons and sellers.”

OfferUp and Letgo will merge their marketplaces with a mixed U.S. buyer base of greater than 20 million month-to-month lively customers. OfferUp will function the mixed companies; Huzar will proceed as CEO and chairman.

Letgo’s enterprise outdoors of North America will likely be individually owned and operated as a part of OLX Group. Letgo had raised $975 million after reeling in a $500 million spherical in 2018. The 5-year-old startup relies in New York City and employs greater than 300 individuals, in keeping with LinkedIn.

“letgo and OfferUp have at all times shared the identical core imaginative and prescient for the way massive America’s secondhand financial system can grow to be – harnessing tech innovation to result in a very optimistic influence on customers’ wallets and in addition on the atmosphere,” Letgo co-founder Alec Oxenford stated in a press release. “Bringing our apps collectively strikes us a lot nearer to that imaginative and prescient.”

OfferUp, based in 2011 and ranked No. 14 on the GeekWire 200, has 280 staff in Bellevue and Miami. Huzar, a former DealSpringer CEO and T-Mobile product supervisor, was impressed to launch the corporate after all of the gadgets round his residence after the beginning of his daughter.

In his weblog publish, Huzar famous the COVID-19 disaster.

“I need to acknowledge that the world is the other way up proper now,” Huzar stated. “This pandemic is affecting all of us, our staff, our companions, and our neighborhood members and can proceed to take action for a while. For practically ten years, OfferUp has strived to take care of a secure, joyful, and wholesome neighborhood — each in-person and on-line — for patrons, sellers. This information helps us to proceed to innovate and develop, regardless of these difficult occasions, and proceed to ship on that promise.”

OfferUp stated shopping for exercise for merchandise individuals use at residence has elevated considerably amid the COVID-19 outbreak. There are additionally extra patrons utilizing nationwide delivery.

Business Insider reported final week that OfferUp eliminated hand sanitizer; rest room paper; protecting masks; and disinfecting merchandise from its platform final week to discourage value gouging. Amazon can also be coping with the identical drawback; it has eliminated greater than 500,000 gives from its market resulting from coronavirus-based value gouging.

OfferUp competes with Craigslist, eBay, Facebook, and different market apps.

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