{{Short description|Mobile classifieds app}} {{Infobox website | name = Letgo | logo = Letgo logo.png | logo_size = 120px | caption = Letgo app icon | company_type = Private | location_city = New York City and Barcelona<ref>{{cite news|last1=Lomas|first1=Natasha|title=Wallapop and LetGo, two Craigslist rivals, merge to take on the U.S. market, raise $100M more|url=https://techcrunch.com/2016/05/10/wallapop-and-letgo-two-craigslist-rivals-plan-merger-to-take-on-the-u-s-market/|access-date=14 April 2018|publisher=TechCrunch|date=10 May 2016}}</ref><ref>{{cite news|last1=Hopland|first1=Sindre|title=Barcelona Marketplace Merger: Wallapop + Letgo = Letgo|url=http://www.barcinno.com/barcelona-marketplace-merger-wallapop-letgo/|work=Barcinno|access-date=14 April 2018|date=12 May 2016}}</ref> | founder = Alec Oxenford<br>Jordi Castello<br>Enrique Linares | type = Online classifieds | language = English, Czech, Spanish, Brazilian Portuguese, Italian, Norwegian, Swedish, Croatian, Turkish | foundation = {{start date|2015|01}} | industry = Marketplace, App | current_status = Active only in Turkey, Spain, and Norway | successor = OfferUp (for North America)<ref name="offerup-sup"/><ref name="geekwire"/> | homepage = {{URL|https://www.letgo.com}} | native_clients = iOS and Android }}
'''Letgo''' (stylized '''letgo''') is a company that provides a website and app that allows users to buy from, sell to and chat with others locally. The products launched in 2015.<ref>{{cite news|title=South Africa's Naspers Backs Smartphone Start-Up Letgo|url=https://www.nytimes.com/2015/09/04/business/dealbook/south-africas-naspers-backs-smartphone-start-up.html?_r=1|work=The New York Times| date=3 September 2015 |access-date=17 December 2015}}</ref>
==History== Launched in January 2015 by Alec Oxenford, former CEO of OLX, the app initially targeted the U.S. market, competing against eBay and Craigslist, the online marketplace leaders since the 1990s.<ref name="F">{{Cite news|url=http://fortune.com/2015/09/03/letgo-ebay-funding/|title=A new app with 2 million users just raised $100 million to take on eBay|date=2015-09-03|website=Fortune|access-date=2016-06-18}}</ref><ref>{{Cite web|url=http://www.finsmes.com/2016/05/letgo-merges-with-wallapop-raises-100m.html|title=letgo Merges with Wallapop; Raises $100M|date=2016-05-12|website=FinSMEs|access-date=2016-06-18}}</ref><ref name=":3">{{Cite news|url=https://www.artsy.net/article/artsy-editorial-meet-the-argentinian-tech-entrepreneur-who-started-his/|title=Meet the Argentine Tech Entrepreneur Who Started His Own Emerging-Art Incubator|last=Gleeson|first=Bridget|date=2015-05-27|access-date=2016-06-14|website=Artsy}}</ref><ref name=":TC">{{Cite web|url=https://techcrunch.com/2016/05/11/naspers-plants-a-flag-in-u-s-with-new-venture-group/|title=Naspers Plants a Flag in U.S., with New Venture Group|last=Loizos|first=Connie|website=TechCrunch|date=11 May 2016 |access-date=2016-06-18}}</ref>
In May 2016, the company merged with Wallapop, another mobile classifieds startup.<ref name=":0">{{Cite news|url=https://techcrunch.com/2016/05/10/wallapop-and-letgo-two-craigslist-rivals-plan-merger-to-take-on-the-u-s-market/|title=Wallapop and LetGo, two Craigslist rivals, merge to take on the U.S. market, raise $100M more|last1=Lunden|first1=Ingrid|date=2016-05-10|access-date=2016-06-18|last2=Lomas|first2=Natasha|website=TechCrunch}}</ref> Letgo remained the majority owner of the company and the brand remained Letgo.<ref name="MW">{{Cite web|url=http://www.marketwatch.com/story/letgo-buys-fellow-mobile-classifieds-startup-wallapop-2016-05-12|title=Letgo buys fellow mobile classifieds startup Wallapop|last=Geron|first=Tomio|website=MarketWatch|date=12 May 2016 |access-date=2016-06-18}}</ref> At the time, there were about 10 million monthly active users between the two apps, according to SurveyMonkey data published by TechCrunch.<ref>{{cite news|last1=Shieber|first1=Jonathan|title=Letgo raises $175 million for its used goods marketplace|url=https://techcrunch.com/2017/01/17/letgo-raises-whopping-175-million-financing-for-its-used-goods-marketplace/|access-date=2 May 2017|work=TechCrunch|date=17 January 2017}}</ref>
From its launch, the company did not charge for its services, earning no revenue, as part of its strategy to grow quickly.<ref>{{cite news|url=https://techcrunch.com/2017/01/17/letgo-raises-whopping-175-million-financing-for-its-used-goods-marketplace/|title=Letgo raises $175 million for its used goods market|last1=Shieber|first1=Jonathan|date=17 January 2017|access-date=8 October 2018|publisher=TechCrunch}}</ref> As of June 2018, the listing service remained free, but the app added a paid beta feature allowing users to place their sales item above organic search results.<ref>{{cite web|url=https://www.feedough.com/letgo-business-model-how-does-letgo-make-money/|title=LetGo Business Model: How does LetGo Make Money?|last1=Pahwa|first1=Aashish|website=Feedough.com|date=2 October 2017 |access-date=8 October 2018}}</ref>
Three quarters of the first round investment of $100 million was slated for marketing.<ref name=":2">{{Cite news|url=https://www.nytimes.com/2015/09/04/business/dealbook/south-africas-naspers-backs-smartphone-start-up.html|title=South Africa's Naspers Backs Smartphone Start-Up Letgo|last=de la Merced|first=Michael J.|date=2015-09-03|newspaper=The New York Times|access-date=2016-06-15|issn=0362-4331}}</ref> The ad agency Crispin Porter + Bogusky Miami created a television ad campaign for the app, directed by filmmaker Craig Gillespie. Each advertisement is premised on an extreme situation, such as a person dangling over a cliff who might plunge down because he's holding on to a bowling ball, where the sensible thing to do is to let go of the item.<ref name=":5">{{Cite news|url=http://www.fastcocreate.com/3056269/how-startup-letgo-aims-to-help-americans-get-rid-of-their-useless-stuff|title=How Classifieds Startup Letgo Aims To Help Americans Get Rid Of Their Useless Stuff|date=2016-02-08|access-date=2016-06-19|publisher=Fast Company|language=en-US|website=Co.Create}}</ref> CP+B Miami also created a series of four ads allowing customers to incorporate images and descriptions of their items for sale directly into a satirical video ad, such as one featuring action film star Dolph Lundgren as a mercenary.<ref>{{Cite web|url=http://digiday.com/brands/letgos-new-tool-lets-users-make-blockbuster-ads-sell-junk/|title=Letgo's new tool lets users make blockbuster ads to sell their junk - Digiday|last=Dua|first=Tanya|date=2016-04-21|website=Digiday |language=en-US|access-date=2016-06-19}}</ref>
The app launched in Canada in October 2016 and in Norway in November 2016.<ref>{{Cite news|url=https://www.theglobeandmail.com/report-on-business/letgo-smartphone-app-looks-to-disrupt-online-classifieds-market-in-canada/article32588433/|title=Letgo smartphone app looks to disrupt online classifieds market in Canada|access-date=2017-01-02|newspaper=The Globe and Mail}}</ref><ref>{{Cite news|url=http://e24.no/digital/gr-nder/argentinsk-seriegr-nder-gaar-til-kamp-mot-finn-no/23837662|title=Argentinsk seriegründer går til kamp mot finn.no|last=Moe|first=Sigrid|newspaper=E24|access-date=2017-01-02|archive-date=2016-11-19|archive-url=https://web.archive.org/web/20161119000800/http://e24.no/digital/gr-nder/argentinsk-seriegr-nder-gaar-til-kamp-mot-finn-no/23837662|url-status=dead}}</ref>
In September 2019, Naspers spun off its investments in Letgo into a separate company, Prosus.<ref name=bb>{{cite news |last1=Drozdiak |first1=Natalia |title=Naspers Prepares to List Global Empire From Ads to Tencent |url=https://www.bloomberg.com/news/articles/2019-09-06/naspers-prepares-to-list-global-empire-from-ads-to-tencent |access-date=30 October 2019 |publisher=Bloomberg |date=9 September 2019}}</ref>
In March 2020, competitor OfferUp announced they would be acquiring Letgo.<ref name="geekwire">{{Cite web|url=https://www.geekwire.com/2020/offerup-raises-120m-will-acquire-rival-letgo-olx-group-40-combined-entity/|title=OfferUp raises $120M, will acquire rival Letgo; OLX Group to own 40% of combined entity|date=2020-03-25|website=GeekWire|language=en-US|access-date=2020-03-26}}</ref> As of September 21, 2020, Letgo officially became a part of OfferUp.<ref name="offerup-sup">{{Cite web|title=letgo is now part of OfferUp!|url=http://help.offerup.com/hc/en-us/articles/360045196832|access-date=2020-10-02|website=OfferUp Support|language=en-US|archive-date=2020-10-23|archive-url=https://web.archive.org/web/20201023103728/https://help.offerup.com/hc/en-us/articles/360045196832|url-status=dead}}</ref>
== Growth == By September 2015, the company said its app had two million downloads and half a million product listings.<ref name="F" /> Comscore said it was the second-fastest growing app in the U.S., in 2017.<ref name="TechCrunch">{{Cite news|url=https://techcrunch.com/2018/08/08/letgo-the-2nd-hand-shopping-app-raises-another-500m-at-over-a-1-5b-valuation/|title=LetGo, the 2nd-hand shopping app, raises another $500M at over a $1.5B valuation|work=TechCrunch|access-date=2018-09-10|language=en-US}}</ref> As of January 2018, the app had about 75 million downloads, compared to 30 million in August 2016.<ref>{{Cite news|url=https://www.bloomberg.com/news/articles/2016-08-25/ebay-rival-letgo-touts-sales-growth-as-vcs-foot-the-bill|title=EBay Rival Letgo Touts Sales Growth as VCs Foot the Bill|date=2016-08-25|newspaper=Bloomberg.com|access-date=2017-01-02}}</ref> It had 200 million listings for secondhand goods and about three billion messages were exchanged between users.<ref name="house2">{{cite news|url=https://techcrunch.com/2018/01/22/letgo-takes-on-craigslist-with-addition-of-housing-listings/|title=Letgo takes on Craigslist with addition of housing listings|last1=Perez|first1=Sarah|date=22 January 2018|access-date=14 April 2018|publisher=TechCrunch}}</ref> The company said it had monthly repeated visitors in the "tens of millions".<ref name="house2" /> In August 2018, the company reported the app had more than 100 million downloads and 400 million. Listings were up about 65% during the first eight months of 2018.<ref>{{Cite news |url=https://techcrunch.com/2018/08/08/letgo-the-2nd-hand-shopping-app-raises-another-500m-at-over-a-1-5b-valuation/|title=LetGo, the 2nd-hand shopping app, raises another $500M at over a $1.5B valuation|work=TechCrunch|access-date=2018-09-10|language=en-US}}</ref>
== Funding ==
The company raised US$100 million in 2015,<ref name="F" /> one of the five largest first rounds of venture capital financing since 2008.<ref name=":2" /> Following a merger in May 2016 with Wallapop, a competitor with a reported valuation of about $570 million, the company raised an additional $100 million.<ref name=":0" /> As of September 2017 the company valuation was more than $1 billion. By that time, it had raised $375 million in total capital.<ref>{{cite news|url=http://www.businessinsider.com/letgo-app-buy-sell-used-items-online-2017-9|title=Billion-dollar startup Letgo is becoming the go-to app for selling your stuff — here's how it works |last1=Hartmans|first1=Avery|date=20 September 2017|access-date=14 April 2018|work=Business Insider}}</ref> In August 2018, it raised $500 million from Naspers.<ref name="NYT2">{{cite news|url=https://www.nytimes.com/2018/08/14/technology/venture-capital-mega-round.html|title=$100 Million Was Once Big Money for a Start-Up. Now, It's Common.|last1=Griffith|first1=Erin|date=14 August 2018|access-date=8 October 2018|work=The New York Times}}</ref><ref>{{cite news|url=https://www.bizjournals.com/newyork/news/2018/08/16/secondhand-marketplace-appletgo-scores-500m-from.html|title=Secondhand marketplace app Letgo scores $500M from Naspers|last1=Noto|first1=Anthony|date=16 August 2018|access-date=8 October 2018|work=Biz Journals}}</ref>{{clear}}
== Product == {{CSS image crop |Image = Letgo_feed.png |bSize = 180 |cWidth = 100 |cHeight = 170 |oTop = 60 |oLeft = 40 |Location = right |Description = Letgo feed }}
The app and website facilitate buying and selling used goods. The marketplace, optimized primarily for smartphones, features large photos of products for sale.<ref name=":4">{{Cite news|url=https://techcrunch.com/2015/09/03/mobile-app-letgo-raises-100-million-from-naspers-to-take-over-classifieds-in-the-u-s/|title=Mobile App Letgo Raises $100 Million From Naspers To Take Over Classifieds In The U.S.|last=Perez|first=Sarah|date=2015-09-03|access-date=2016-06-14|website=TechCrunch}}</ref> No log-in is required.<ref name=":5" /> Goods are displayed based on the geolocation closest to the buyer. The app is integrated with instant chat functionality.<ref name=":4" />
In 2018, the company added video listings and image recognition that includes pricing suggestions.<ref name="TechCrunch"/> A housing section was also added.<ref>{{Cite news|url=https://www.theverge.com/2018/1/22/16920308/letgo-housing-sales-rentals-app-update-craigslist-competitor|title=Craiglist competitor Letgo adds housing sales to its secondhand marketplace|last=Gartenberg|first=Chaim|date=22 January 2018|work=The Verge|access-date=22 January 2018|publisher=Vox Media}}</ref>
==See also== * Tech companies in the New York metropolitan area {{clear}}
==References== {{Reflist|30em}}
Category:Retail companies established in 2015 Category:Internet properties established in 2015 Category:2015 establishments in New York City Category:Android (operating system) software Category:Online marketplaces of the United States Category:IOS software Category:Software companies based in New York City Category:Defunct software companies of the United States Category:Defunct computer companies based in New York (state) Category:2015 establishments in the United States Category:Software companies established in 2015 Category:American companies established in 2015 Category:2020 mergers and acquisitions