Wallapop and LetGo, two Craigslist rivals, plan merger to tackle the U.S. market
Consolidation is afoot within the on-line classifieds area as two common startups born in Barcelona are in superior talks to merge operations within the U.S.. Wallapop and LetGo — which each present platforms for shoppers to submit used gadgets on the market and negotiate the gross sales offline — want to mix their operations within the U.S. to scale up in competitors towards the likes of huge incumbents like Craigslist and eBay, but in addition newer entrants into the identical area, corresponding to OfferUp, 5miles and Fb’s Market.
TechCrunch discovered of the negotiations from sources near the matter, and has confirmed it with additional sources. We are additionally reaching out to Wallapop and LetGo for a remark. (And, whereas we have been asking round for extra info, we noticed that Spanish publication Vanguardia additionally revealed information of this within the final hour.)
The businesses have every each reportedly raised greater than $one hundred million in funding thus far. Wallapop — which has by no means publicly confirmed the quantity it has raised, though our sources have stated it’s a minimum of $one hundred million — embrace Perception Enterprise Companions and Accel. OfferUp, in the meantime, is backed by South Africa’s Naspers, which additionally acquired a earlier firm from founder Alec Oxenford — the classifieds big OLX. Whereas each have been based in Barcelona, they’ve every discovered audiences within the U.S. market. LetGo calls New York its headquarters. Neither have disclosed consumer numbers however Wallapop reportedly has round 25 million downloads.
One of many causes that the 2 are merging, our sources inform us, is to compete higher towards each the large incumbent gamers, but in addition the wave of different upstarts on this market which are capitalising on the truth that the most important on-line classifieds firm, Craigslist, has been very sluggish to innovate.
Key to that has been a cellular-first strategy, giving customers the categorized expertise in an app that’s straightforward to browse and comes with geotagging and different localizing options.
They embrace smaller outfits like 5miles, which has picked up funding from corporations like Alibaba. And in addition greater names like OfferUp, which in November final yr confirmed a $ninety three million increase and tens of millions of consumers.
And there are new performs from greater and older gamers. They embrace Fb Market, which has been round perpetually however has quietly grown to be a menace, in response to sources. Simply the opposite week, Fb moved to place a Market hyperlink on the decrease bar of its principal Fb cellular app — probably it’s personal mark of the way it plans to go after this e-commerce market extra aggressively.
On this context, it looks like a really fascinating coincidence that simply the opposite week, eBay determined to reveal that Close5 has handed 7 million downloads.
We now have reached out to each corporations and can replace this publish as we study extra.