Letgo, the fast-growing marketplace app which allows users to buy and sell used goods, has secured an additional $500 million in funding from South African e-commerce and media giant Naspers. Letgo has also announced that its app has passed 100 million downloads and 400 million listings since its launch three years ago, with the majority of its users based in the US.
Naspers cited letgo’s significant growth and market opportunity as key factors in its decision to provide additional capital. It has committed to invest $500 million into the startup, $150 million of which was transferred earlier this summer.
The new financing will be used to accelerate letgo’s growth, product evolution, expansion into new verticals and revenue-generation efforts.
Alec Oxenford, co-founder of letgo, said:
“We are extraordinarily fortunate to have investors who believe so strongly in our vision and team. We are fuelling unprecedented growth in the secondhand economy through meaningful innovation. Our app makes it simple for tens of millions of buyers and sellers to connect in their own neighbourhoods so they can put more money in their pockets, declutter their lives and put their space to better use.”
Martin Scheepbouwer, CEO of OLX Group, through which Naspers has invested in letgo, added:
“letgo has established itself as one of the most promising startups in the world by injecting excitement, new technology and fresh thinking into a space that’s lacked all of the above for decades in the US.”
Naspers was already an existing backer of letgo, having led a $175 million funding round in January 2017 alongside Accel, Insight Venture Partners, New Enterprise Associates, 14W and other investors. It also participated in providing $100 million of additional funding less than nine months later.
Letgo has not disclosed its valuation, although a report by TechCrunch suggests the investment was raised at a valuation of more than $1.5 billion.