Startups Venture

OfferUp Aims To Raise $150M On Heels Of Letgo’s $500M Raise

On the heels of Letgo’s $500 million round announcement, secondhand marketplace competitor, OfferUp has raised $39 million of its round targeted at $150 million, according to a report by Geekwire which was confirmed by the company.

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If OfferUp closes the remaining $111 million, the company’s total funding will be brought to $371.6 million, per Crunchbase. OfferUp’s previous investors include Max Levchin, Warburg Pincus, Andreessen Horowitz, T. Rowe Price, GGV Capital and others. The Seattle-based company was last valued at more than $1 billion after raising $130 million over two Series D funding rounds in September and November of 2016.

Like Letgo and one of its other competitors, Poshmark, OfferUp is an online service and mobile application that aims to help individuals buy and sell their belongings locally. These mobile-centric apps have aimed to take on Craigslist’s secondhand market with more accessible user interfaces and easier listing capabilities.

However, unlike Letgo, the company has made efforts to monetize. In addition to posting available items on the app, individuals could access paid tools to promote their listings. The company expanded its reach into online transactions in May with the launch of its nationwide shipping platform. With shipping, OfferUp charges a 7.9 percent service fee for each shipped item.

Furthermore, the company has attempted to solve Craigslist’s and Letgo’s trust issues by making significant efforts to increase the safety and validity of interactions on the platform. Through the TruYou platform on OfferUp, individuals can improve their chances of attracting buyers and ensuring safe meetups by opting to upload a picture of their government-issued ID to verify their identity.

At the time of the launch of OfferUp’s shipping service in May, the company reported 42 million unique individuals using the platform in the U.S. in 12 months. The company told Crunchbase News in an email that that metric has increased to 43 million in the last 12 months, and that it has recorded more than 60 million app downloads. The company is not releasing information about its valuation.

Crunchbase News has reached out to the company for updated metrics, we will update the piece if/when we receive a reply.

Editorial Update: OfferUp replied to Crunchbase News, the post has been updated to reflect the metrics the company shared. 

Illustration: Li-Anne Dias