E-commerce group Naspers made a $100m series A investment in US-based mobile commerce platform developer Letgo yesterday, taking a stake of undisclosed size.
Launched in February 2015, Letgo runs a marketplace where goods can be sold locally. The startup, which is competing with the more established eBay and Craigslist, is built for mobile and features large photos, a specialised chat system and hyperlocal search options.
The app has already been downloaded two million times and has been responsible for more than $25m of revenue, though as sales take place offline Letgo does not charge a percentage. It is yet to reveal its revenue generation model.
South Africa-based Naspers has been one of the most significant investors in global e-commerce, having taken sizeable stakes in online marketplaces including India-based Flipkart and Dubai-based Souq, as well as classified listings site OLX, which was founded by Letgo co-founder Alec Oxenford in 2006.
Much of its more successful investments have been in Asia and Africa but Naspers hopes Letgo will enable it to grab a foothold in markets, such as the US, where it is not as active.
Martin Scheepbouwer, chief executive of Naspers Classifieds, said: “Alec has distinguished himself as an expert with an extraordinary track record in mobile e-commerce.
“We have seen firsthand Alec’s ability to execute on his vision as we worked together to build OLX into the global force it is today. In Letgo, Alec has built a platform that is perfectly tailored to the American consumer, and we are excited to help his team take it to the next level.”