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OfferUp acquires letgo, raises funding
Posted on Thursday, 26 March 2020 12:58
Online customer-to-customer marketplace Offerup has announced an acquisition of New York-headquartered peer letgo.

No financial details of the purchase, which the buyer said will create a US marketplace with more than 20.00 million active monthly users, have been disclosed.

At the same time, Offerup unveiled a USD 120.00 million round of funding, led by OLX and also including participation from existing investors like Andreessen Horowitz, GGV Capital and Warburg Pincus.

The buyer noted that the move is in line with its goal of creating the largest, simplest and most trustworthy marketplace for local buyers and sellers.

Announcing the deal, chief executive Nick Huzar said existing customers of both companies will not be affected in the short term as no changes will be made to either app at this time, although clients will soon have access to a larger network of buyers and sellers.

Offerup has received a number of funding rounds in the past; according to Zephyr, the M&A database published by Bureau van Dijk, the most recent of these closed in August 2018, when it secured USD 39.00 million from undisclosed parties.

Previous investors in the firm have included Jackson Square Ventures, AH Capital Management and T Rowe Price.

letgo describes itself as the fast-growing marketplace for buying and selling locally.

Zephyr shows there have been 2,029 deals worth a combined USD 78.97 billion targeting providers of data processing, hosting and related services announced worldwide during 2020 to date.

The most valuable of these took the form of an acquisition as Morgan Stanley agreed to pick up US-based E*Trade Financial for USD 13.00 billion in February.

This was worth almost double the value of the second-placed transaction, which saw Intuit, via Halo Merger Sub II, agree to pick up online credit analysis platform operator Credit Karma for USD 7.10 billion.

© Zephus Ltd