Letgo, a US-based, mobile-focused e-commerce marketplace backed by e-commerce group Naspers, merged with the US operations of Spain-based classified listings app developer Wallapop yesterday.
The merged company will be majority owned by Letgo and will operate on its platform under the Letgo name. It has also raised $100m in new funding from existing investors.
Founded in January 2015, Letgo runs a marketplace app for second hand goods that can link sellers with local buyers. It publicly launched in May the same year before securing $100m in series A funding from Naspers in September.
Wallapop, which was founded in 2013, is the developer of its own hyperlocal e-commerce marketplace app.
The company had raised $150m from investors including Eight Roads, which forms part of the Fidelity group, Northzone, Insight Venture Partners and Accel Partners, sources told TechCrunch, and was valued at more than $570m.
The merger was executed in order to more effectively compete against the market leader in online classified listings, Craigslist, and emerging rivals, the sources added.
Letgo co-founder Alec Oxenford said in a statement: “We are excited to be working with Wallapop’s insightful leadership team, who saw these trends taking shape and entered the sector early.”This partnership is a significant milestone for Letgo and the industry as a whole, and is a substantial advantage as we continue to scale nationally.”
Martin Scheepbouwer, chief executive of Naspers Classifieds, added: “With this partnership in place, no one is better positioned than Letgo to capitalise on the immense opportunity for growth in US classifieds.”