SEATTLE and NEW YORK, March 25, 2020 /PRNewswire/ -- OfferUp and letgo, two of America's most popular apps to buy and sell locally, have announced their intention to combine their US businesses. OLX Group – the classifieds business of Prosus and letgo's majority investor - will own 40% of the combined entity.
The combination will create a leading mobile marketplace supporting more than 20 million monthly active users, with complementary product capabilities and a national footprint across the United States. The agreement includes a new $120 million investment round led by OLX Group along with existing OfferUp investors, including Andreessen Horowitz and Warburg Pincus, to support continued growth, product innovation, and monetization efforts.
OfferUp and letgo have quickly grown in popularity thanks to innovations that make it easier for their communities to buy and sell, and both are consistently ranked as top shopping apps in the App Store and Google Play Store. OfferUp and letgo users will now have access to a larger network of buyers and sellers, which will significantly increase their trading opportunity. Users will also benefit from nationwide shipping and advanced trust and safety programs, and automotive dealers will have access to a meaningfully larger potential customer base. The deal leaves the new company well-positioned to tap into a larger share of America's significant online classifieds sector.
"My vision for OfferUp has always been to build a company that helps people connect and prosper," said Nick Huzar, OfferUp CEO. "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."
"letgo and OfferUp have always shared the same core vision for how large America's secondhand economy can become – harnessing tech innovation to bring about an extraordinarily positive impact on consumers' wallets and also on the environment," said letgo cofounder Alec Oxenford. "Bringing our apps together moves us much closer to that vision."
The deal is subject to regulatory approval. The combined businesses will be operated by OfferUp, which is headquartered in Bellevue, WA. Mr. Huzar will continue to be the CEO of OfferUp and Chairman of the Board. letgo's business outside of North America will remain separately owned and operated as part of OLX Group. Mr. Oxenford will join the Board of OfferUp and also serve as senior advisor to OLX Group and Prosus.
Allen & Company LLC is acting as financial adviser to OfferUp, and Perkins Coie LLP is acting as OfferUp's legal advisers regarding the transaction. OLX Group and letgo Global are advised by Cravath Swaine & Moore LLP, and the management team and minority shareholders of letgo are advised by Morrison & Foerster LLP.
OfferUp is dedicated to building the simplest and most trustworthy way for people to buy and sell in their communities. OfferUp's iOS and Android apps have been in the top five most popular shopping apps lists for more than three years. The privately held company is based in Bellevue, WA and backed by top investors including Andreessen Horowitz, Warburg Pincus, GGV Capital, and Coatue. For more information, visit our website and follow us on Twitter and Facebook.
letgo's free app makes it simple to buy and sell locally. With over 100M downloads and 400M listings worldwide since its 2015 launch, the secondhand marketplace is filled with everything from electronics, cars, and collectibles to housing, clothing, and furniture. letgo was founded by Alec Oxenford, Jordi Castello, and Enrique Linares. For more information, visit letgo.com.
About OLX Group and Prosus
OLX Group is among the world's fastest-growing marketplace networks, serving more than 300 million people every month. Building leading destinations for buying, selling, and exchanging products and services, it operates more than 20 consumer brands including Avito, letgo, and OLX. OLX Group's technology is designed to enable safe and convenient transactions, encouraging reuse to help give items second, third, or even fourth lives. It's estimated to facilitate approximately 17 million trades every month, ranging from cars and furniture to electronics and clothing. The Group is powered by a team of 6,000 people working from 35+ offices around the world. For more information, visit www.olxgroup.com.
OLX Group is the online classifieds business of Prosus, a global consumer internet group and one of the largest technology investors in the world. Prosus has a primary listing on Euronext Amsterdam (AEX:PRX) and a secondary listing on the JSE Limited (XJSE:PRX), and is majority-owned by Naspers. For more information on Prosus and its companies and investments, please visit www.prosus.com.