OfferUp, a top online and mobile marketplace app, announced this morning it’s raising $120 million in a new round of funding led by competiting marketplace letgo’s majority investor, OLX Group, and others. As a part of the deal, OfferUp will also be acquiring letgo’s classified business, with OLX Group gaining a 40% stake in the newly combined entity.
Other investors in the new round include existing OfferUp backers Andreessen Horowitz and Warburg Pincus. The funds will be put towards continued growth, product innovation, and monetization efforts, OfferUp says.
The round will close with the closing of the acquisition, which is expected to take place sometime in May. To date, OfferUp has raised $380 million.
The acquisition will see two of the largest third-party buying and selling marketplaces — outside of Craigslist, eBay, and Facebook Marketplace, of course — become a more significant threat to the incumbents. Together, the new entity will have more than 20 million monthly active users across the U.S. For consumers, the deal means they’ll no longer have to list in as many apps when looking to unload some household items, electronics, furniture, or whatever else they want to sell.
“My vision for OfferUp …read more