The rapidly expanding US mobile marketplace Letgo has announced $175 million in funding from a variety of investors including Naspers; the South-African based global media company who owns online marketplace OLX, which lists property.
Other companies which invested in the C-Series round of funding were Accel, Insight Venture Partners, New Enterprise Associates, 14W among others.
An early decision not to charge its users has led to a scorching pace of growth for letgo, which explains its investors’ interest in backing the service. So far, the letgo app has seen 45 million downloads and reaches 20 million monthly active users.
“The kinds of metrics we care about are activity,” said company founder Alex Oxenford, who previously launched OLX with help from letgo’s original backers — Naspers.
This strategy has helped the company battle giants in online retail and was what helped Alibaba create a multi-billion dollar online behemoth in China.
This is a strategy Oxenford wants to replicate in the US.