LetGo, a startup that has constructed a marketplace for folks to shop for and promote used goods, is likely one of the quickest rising apps within the U.S. at the instant in line with comScore, with some 75 million downloads, “tens of millions” of lively customers, and 200 million listings within the ultimate two years. Now it’s gearing up for every other degree of growth. TechCrunch has realized from a supply that LetGo has quietly raised every other $100 million in investment, at a valuation of over $1 billion.
The cash comes most effective nine months after LetGo raised $175 million and round 15 months after New York-based LetGo merged with Spanish rival Wallapop in a bid for more scale, and amid but every other $100 million spherical.
We take into account that this newest $100 million closed most effective about a week in the past and comes to current buyers. To date, LetGo has raised $375 million, with backers together with 14W, Accel, Eight Roads Venutures, FJ Labs, Insight Venture Partners, Mangrove, Naspers, NEA, NextView and Northzone.
A spokesperson for LetGo declined to remark for this tale, however as we realize it, once we made enquiries the corporate requested buyers to forestall leaking data.
LetGo’s massive rounds of investment made in fast succession are jointly a signal of the way aggressive its space is at the instant.
While Amazon and Walmart proceed to check out to outdo every different within the race to dominate client retail trade, LetGo is one of the fast-growing cadre of startups which might be taking up Craigslist and eBay within the sale of used goods. Others in the similar house come with OfferUp, Close5 (which is in truth owned by way of eBay however operated one after the other), 5miles, and Facebook’s Marketplace.
It’s nonetheless a lengthy street to domination, despite the fact that: LetGo says that its cell visitors has grown to part that of Craigslist’s on cell, and one-third of Craigslist’s general, together with internet and cell. It’s now not transparent how others examine.
Among the startups in that team, OfferUp seems to be LetGo’s closest rival at the instant: like LetGo the corporate may be rising immediate, in line with comScore’s analysis, and it’s reportedly within the strategy of elevating $120 million at a $1.2 billion valuation.
LetGo has remained unfastened to obtain and use as a position to submit an merchandise on the market — which is a technique of encouraging target market expansion of one,224 p.c within the ultimate two years (hanging it at number-two in the back of Snap’s Bitmoji). In truth, its most effective paid function at the moment is an not obligatory one: a price you’ll pay to advertise your record.
“We’re exploring a number of other ideas to monetize, particularly through value-added services for users,” CEO Alec Oxenford, who co-founded LetGo with Jordi Castello and Enrique Linares, instructed TechCrunch ultimate week (and earlier than we were given wind of this investment). “Revenue potential for Letgo is huge and we are focused on building a profitable business, but our top priority will always be ensuring Letgo remains a great place to buy and sell.”
For now, the corporate is making an attempt to tell apart itself from the remainder of the pack by way of its simplicity.
“When you look at the most successful two-way marketplaces like Airbnb, Lyft and Uber, they got there by focusing on simplicity and empowering users. That’s exactly what’s driving Letgo’s success,” Oxenford stated.
Like different apps which might be disrupting the marketplace for promoting used goods on more legacy platforms — be they old-style categorised advertisements, or eBay or Craigslist — LetGo is enthusiastic about decreasing the choice of steps that it takes to add pieces, in an effort to cut back the drop-off in customers that takes position when posting comes to too many steps; and is hoping to do one of the be just right for you by the use of AI.
Here, you’re taking a picture of your object, and LetGo makes use of laptop imaginative and prescient and device finding out to spot the item for you, after which mechanically identify and categorise it. Oxenford stated it’s the one probably the most used-good marketplace apps to do that at the instant.
And with its DNA in part consisting of cell, it’s additionally no wonder that LetGo has made messaging considered one of its sturdy fits. Some three billion messages were despatched to-date, figuring out to nine million day-to-day.
We will replace this submit as and once we be informed more.