Web: A new app with 2M users just raised $100M to take on eBay

September 2015 by: From The Web

Every year, dozens of new startups try to disrupt eBay and Craigslist, the Internet stalwarts that have ruled online classified ads for two decades.

None have come close to pulling it off because the incumbents have nailed the most difficult part: market liquidity, or a plethora of both buyers and sellers.

That could change with the arrival of Letgo. On Thursday the New York and Barcelona-based marketplace startup revealed that it raised $100 million in a Series A round of funding from Naspers Limited, the African conglomerate. Let that sink in: $100 million Series A. This is the world we’re living in.

Beyond the giant pool of capital, Letgo has a stronger chance of success than other startups because it’s co-founded by Alec Oxenford, who previously co-founded OLX, the eBay of the emerging markets, alongside well-known angel investor Fabrice Ginda. With 240 million users in 40 countries, OLX is an impressive, success story that’s unknown to Americans. Fortune profiled the company last year. At the time, the company was the largest marketplace in India, Poland, and Brazil, boasting 11 billion monthly page views, 25 million listings, and 8.5 million monthly transactions. The company is owned by Naspers, which acquired it in 2010. Oxenford will remain Chairman of OLX while leading Letgo.


Continue Reading: Fortune