On Wednesday, online marketplace OfferUp announced that it raised $120 million in an investment round led by OLX Group. Along with this investment, OfferUp also announced that it’s joining forces with competitor letgo and merging into one business, pending regulatory approval.
Odds are you have some valuable stuff lying around in your house that you’re willing to let go of for cash. If not, you’re probably in the market for something to purchase. Online marketplaces like OfferUp and letgo have gained popularity in the United States as a way to buy or sell secondhand goods locally. These sites offer a chance to earn some extra money, or to buy items at a discount. The marketplace features items ranging from clothing and video games to furniture, appliances and even cars.
By merging, OfferUp and letgo will have a combined base of over 20 million monthly active users.
“My vision for OfferUp has always been to build a company that helps people connect and prosper. We’re combining the complementary strengths of OfferUp and letgo in order to deliver an even better buying and selling experience for our communities,” OfferUp CEO Nick Huzar said in a statement.
“letgo and OfferUp have always shared the same core vision for how large America’s secondhand economy can become — harnessing tech innovation to bring about an extraordinarily positive impact on consumers’ wallets and also on the environment. Bringing our apps together moves us much closer to that vision,” letgo co-founder Alec Oxenford said in a statement.
OfferUp, which is headquartered in Bellevue, will operate the combined businesses. letgo’s operations outside of North America will operate separately as part of OLX Group.
The company says that this new funding will help support OfferUp’s growth, monetization efforts and product innovation.