Leading mobile marketplace OfferUp is ready for some big changes.
The Washington-based startup recently announced the successful conclusion of a funding round worth $120 million, bringing total funding to $380 million and an unknown valuation - the last update, back from August 2018, estimated it at a cool $1.4 billion.
And that capital appears to have gone into quite the purchase: OfferUp has completed an agreement to acquire its popular e-commerce competitor, Letgo. Only just reaching its fifth birthday, Letgo has raised an impressive $975 million following a huge $500 million round back in 2018.
With both parties planning on merging their marketplaces for a combined American base of over 20 million active users monthly, ownership will definitely be changing some hands. OLX Group, prominent investor from the Netherlands that led the round as well as the majority investor of Letgo, will own 40% of the combined group pending approval.
OfferUp CEO Nick Huzar will remain in his position and as chairman, and seems to be intent on keeping things business as usual. Commenting on the coronavirus pandemic's context in an announcement blog post, Huzar said:
“I want to acknowledge that the world is upside down right now. This pandemic is affecting all of us, our employees, our partners, and our community members and will continue to do so for some time. For nearly ten years, OfferUp has strived to maintain a safe, happy, and healthy community — both in-person and online — for buyers, sellers. This news helps us to continue to innovate and grow, in spite of these challenging times, and continue to deliver on that promise.”