Letgo was a company that allows users to buy and sell used products, either by using their website or app. It was launched in January 2015, by Alec Oxenford and is headquartered in New York City and Barcelona. The app initially targeted the U.S. market, competing against Craigslist and eBay the two online marketplace leaders since the 1990s. Recently, in March 2020, the competitor Offerup announced that they would be acquiring Letgo and on September 21, 2020, Letgo officially became part of Offerup. Letgo is currently inactive.
How Letgo works?
- Getting started: First download the app on the phone, either Android or iOS. Then, register for an account in Letgo all you need is an email, a valid password, and a photograph. Now, you are ready with an account to buy and sell.
- Navigating the platform: On the main page of the app you’ll see the items that other users have listed for sales and you will also see a search bar to search the things you need. There are also different-different categories mentioned on the homepage such as movies, books, electronics, from there you can have a look at what all you need.
If you want to sell the products, click on the sell your stuff option then you have to follow the following steps:
- Firstly, take the snap of the product you want to sell.
- After that put the price on that product, you can either put a perfect amount or can leave the price as negotiable.
- After that put the title, description, and category, for that just tap the “add more details” option. You can also put additional photos.
- After that, you just have to press the “done” button.
There are many key partners of Letgo such as 14W, Accel, Eight Roads Ventures, FJ Labs, Insight Venture Partners, Mangrove, Naspers, NEA, Nextview, and Northzone.
The key activities of Letgo are that buyers and sellers can interact with each other with the chat feature, Letgo uses your location to find the best possible results.
Letgo key resources are its brand flexibility as customers can buy, sell and chat with each other.
Letgo has a strong value proposition that will benefit them in the coming future in growing, reach sustainable levels of profitability at scale, it also captured the increasing share of the incremental value and it also adds to the market support and will establish a favorable competitive position in the near future.
Letgo offers customers all the services possible. The company also made the process of buying and selling as easy as possible. Buyer and seller can also chat regarding the product which will create, trustworthy environment.
Letgo always created values for each of its customers. Though there is no target market of Letgo as Letgo welcomes every age group and every kind of market with open hands.
Letgo connects with its customers through its website, app, and other social media platform. Letgo tries to keep in touch with its customers and offers them services whenever they need them.
Letgo charges the product owners with fees ranging from $0.99 to $3.99 which will depend on the product. Letgo’s pro plan goes like $99 for 30 vehicles, $399, and $599 for 70 and 150 vehicles respectively, they also provide 30 days free trial.
The annual revenue is estimated to be $5 million as of December 2018. The profit/net income is $3.65 billion in September 2019.
Valuation, expenses, and revenue:
Three-quarters of the first-round investment of $100 million was slated for marketing for Letgo. As of January 2018, the Letgo app had 75 million downloads as compared to 30 million in 2016. Listings were up about 65% during 2018, the first 8 months. The annual revenue is estimated to be $5 million in December 2018 and the profit/net income is $3.65 billion in September 2019.
Investor’s Details and funding:
In 2015, the company raised US$100 million, one of the five largest first rounds of venture capital, financing since 2008. Letgo followed a merger with Wallapop in May 2016, a competitor with a reported valuation of about $570 million, the company raised an additional $100 million. The company valuation was more than $1 billion in September 2017. By that time, it had raised $375 million in total capital. In August 2018, the company raised $500 million from Naspers. Now let us see the funding history of Letgo:
- Facebook Marketplace
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What is Letgo?
Letgo was a company that allows users to buy and sell used products, either by using their website or app.
Who founded Letgo?
Letgo was launched in January 2015, by Alec Oxenford and is headquartered in New York City and Barcelona.