OfferUp has acquired fellow mobile marketplace letgo for an undisclosed sum, securing $120 million in funding in the process and combining two businesses with a total of 20 million monthly active users. OLX Group, the parent company of letgo, led the funding round, and will own 40% of OfferUp upon regulatory approval of the transaction.
The deal gives users of both marketplaces access to a larger network of buyers and sellers, and was designed to leave the new company well-positioned to tap into a larger share of the online classifieds sector. There are no changes to the OfferUp or letgo apps in the short term, so any items that are presently on sale through the apps will not be affected.
OfferUp will operate the combined businesses; Nick Huzar will continue as CEO and Chairman of the company
“My vision for OfferUp has always been to build a company that helps people connect and prosper,” said Huzar in a statement. “We’re combining the complementary strengths of OfferUp and letgo in order to deliver an even better buying and selling experience for our communities. OLX Group has unparalleled expertise and clear success with growing online marketplace businesses, so they’ll be a great partner as we continue to build the widest, simplest, and most trustworthy experience for our customers.”
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Existing OfferUp investors Andreessen Horowitz and Warburg Pincus also participated in the round, which brings total funding to date for OfferUp to $380 million. The company declined to disclose its valuation, but it was valued at $1.4 billion after its most recent funding round in August 2018, according to PitchBook. Letgo had raised $975 million total after securing a $500 million round in 2018.
