Letgo
Letgo was a mobile application designed for buying and selling second-hand goods and services locally, emphasizing ease of use through photo-based listings and location-specific searches.[1] Launched in 2015, the app quickly gained popularity by simplifying the classifieds process with easy photo uploads and minimal text input; AI-assisted categorization and descriptions from images were added later in 2018.[2] Its core features included in-app messaging for negotiations, user ratings for trust-building, and geolocation to connect nearby buyers and sellers, fostering a marketplace similar to a digital flea market without shipping complexities.[3] Founded by entrepreneurs Alec Oxenford, Jordi Castello, and Enrique Linares in New York City, Letgo drew on Oxenford's prior experience co-founding the global classifieds platform OLX.[4] The company achieved rapid growth, amassing over 100 million downloads worldwide within its first few years and becoming one of the top apps in the local commerce category.[5] Initially backed by significant venture funding, including a $100 million round in 2016, Letgo expanded internationally while focusing on user-friendly mobile experiences that prioritized speed and accessibility over traditional web-based classifieds.[6] In March 2020, OfferUp, a competing U.S.-based marketplace app, acquired Letgo's North American operations in a deal that also involved OfferUp raising $120 million in funding.[7] The acquisition merged the two platforms, integrating the combined user bases—exceeding 20 million monthly active users at the time—into OfferUp to create a larger, unified service for local transactions.[8] Following the merger, the standalone Letgo app was phased out in the U.S. by September 2020, redirecting users to OfferUp.[9] Non-North American operations remained with OLX Group until July 2023, when the Turkish business was acquired by Hedef Filo, with the app continuing in limited international markets as of 2025.[10]History
Founding and Launch
Letgo was founded in 2015 by Alec Oxenford, Jordi Castello, and Enrique Linares, with Oxenford drawing on his prior experience as co-founder and chairman of the OLX Group, a global online classifieds platform.[11][12] The company emerged from Oxenford's vision to modernize local peer-to-peer marketplaces, building on lessons from OLX's operations in emerging markets to create a streamlined mobile experience for everyday users.[11] The platform's initial concept centered on image-based listings to facilitate the local buying and selling of used goods, such as electronics, furniture, and clothing, emphasizing visual appeal over text descriptions.[11] This approach differentiated Letgo from text-heavy competitors like Craigslist, offering a mobile-first interface with features like instant photo uploads, geolocation-based searches, and integrated messaging to simplify transactions.[11] By prioritizing ease of use and visual discovery, Letgo aimed to capture the growing demand for quick, neighborhood-level exchanges in urban areas.[13] Letgo launched in the United States in February 2015 through dedicated iOS and Android apps, targeting major cities for immediate rollout.[11] The debut benefited from early strategic ties to the OLX ecosystem, including Naspers as a key backer, which provided foundational support and resources ahead of the public release.[11] This groundwork enabled rapid early adoption, particularly among urban users seeking convenient alternatives to traditional classifieds.[11]Early Growth and Milestones
Following its launch in 2015, Letgo rapidly scaled its user base through a mobile-first approach emphasizing ease of local transactions. By mid-2016, the app had achieved over 30 million downloads and 13.2 million monthly active users, marking significant early traction in the U.S. market.[14] In May 2016, Letgo merged with the U.S. operations of Wallapop, another mobile classifieds platform, to bolster its growth and user base.[15] This growth accelerated into 2017, with downloads reaching 45 million and monthly active users hitting 20 million by January, reflecting strong adoption among users seeking quick, photo-based listings for second-hand goods.[16] Key milestones underscored Letgo's rising prominence. In 2016, it was recognized as one of Google's Best Apps of the year, boosting visibility and downloads.[14] The app also climbed U.S. shopping app rankings, entering the top 10 that year and securing a spot among the top five by 2017, while gaining ground in global charts through international availability.[17] By September 2017, Letgo reported 75 million downloads, 200 million listings, and over 3 billion user messages exchanged, demonstrating robust platform engagement.[18] Growth continued into 2018, surpassing 100 million downloads worldwide and solidifying its position as a leading local marketplace app.[19] Product innovations drove further user retention and efficiency. In 2016, Letgo introduced user ratings and reviews for buyers and sellers, fostering trust in peer-to-peer transactions and correlating with its 13.2 million monthly active users at the time.[20] The platform's core in-app chat feature, which enabled real-time communication from launch, was enhanced over time to support seamless negotiations. In July 2018, Letgo debuted Reveal, an AI-powered tool using computer vision for image recognition to automate listing titles, categories, and price suggestions, simplifying the posting process and differentiating it from text-heavy competitors.[21] Despite these advances, Letgo encountered challenges from intensifying competition, particularly after Facebook Marketplace launched in October 2016, leveraging its 1.8 billion users to disrupt local selling apps with integrated social features.[22] By 2017, Letgo's mobile traffic had reached half of Craigslist's.[23]Funding and Investment
Investment Rounds
Letgo's funding journey began with a significant Series A round on September 3, 2015, when the company raised $100 million led by Naspers.[11] This investment was earmarked primarily for expanding the mobile app's presence in the U.S. market, challenging established classifieds platforms like Craigslist through aggressive marketing and product enhancements.[11] In May 2016, Letgo secured an additional $100 million in a Series B round from existing investors, building on the initial capital to accelerate user acquisition and platform development.[6] The funds supported further refinements to the app's visual search and local matching features, enabling rapid scaling in key urban areas.[24] The company's Series C round arrived on January 17, 2017, raising $175 million from a syndicate including Naspers, Insight Venture Partners, Accel, 14W, and Eight Roads Ventures, which propelled its valuation close to $1 billion.[16] This capital was directed toward international growth initiatives, such as potential expansion into Africa, alongside bolstering domestic marketing campaigns and technological upgrades to improve user experience.[25] Letgo continued its momentum with a Series D round in September 2017, securing $100 million from prior backers at a $1 billion valuation.[23] The proceeds focused on sustaining high-growth trajectories, including enhanced app development for better photo-based listings and targeted advertising to drive downloads.[23] The final major round before acquisition came in August 2018 as a Series E, with $500 million invested by Naspers, elevating the valuation to over $1.5 billion.[26] This substantial infusion aimed at fortifying global operations, investing in AI-driven recommendations, and expanding marketing efforts to solidify Letgo's position in the second-hand goods marketplace.[27] Across these rounds from 2015 to 2018, Letgo raised approximately $975 million, which collectively fueled its transformation from a nascent app to a dominant player in local buying and selling.[28]| Round | Date | Amount | Lead Investors | Purpose |
|---|---|---|---|---|
| Series A | September 3, 2015 | $100M | Naspers | U.S. market expansion, marketing, app development[11] |
| Series B | May 2016 | $100M | Existing investors (e.g., Naspers, Insight Venture Partners) | User acquisition, platform refinements[6][24] |
| Series C | January 17, 2017 | $175M | Naspers, Insight Venture Partners, Accel | International growth, marketing, tech upgrades[16] |
| Series D | September 2017 | $100M | Existing investors | Sustained growth, app enhancements, advertising[23] |
| Series E | August 8, 2018 | $500M | Naspers | Global operations, AI features, marketing expansion[26] |