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.